Tuesday, the United Arab Emirates’ Ministry of Economy (MoE) issued a warning about increasing penalties for suppliers and retailers that increase the cost of eggs and chicken products by more than the permitted 13%. According to the details, the minimum fine imposed will be AED 10,000, with repeat violations resulting in a penalty of up to AED 200,000.
The MoE previously approved a brief hike in the cost of eggs and other poultry products. After conducting research, it determined that a price increase of up to 20% was appropriate, while the Supreme Committee for Consumer Protection (SCCP) suggested a cap of just 13%.
The choice was taken in response to demands from businesses in the industry suffering losses due to high production and shipping costs and rising prices for raw materials like feed.
The Ministry decided to stabilise the industry and safeguard customers from disproportionate price increases because poultry products are considered essential commodities.
The Ministry took into account the high costs of importing these products from nations like Russia and Ukraine, which are the leading suppliers of grains in the global feed industry, as well as the high prices of raw materials used in the production of eggs and poultry, such as fodder, fuel, and vaccinations.
It is pertinent to mention here that the Ministry will review the decision in five months in order to determine whether to lower or retain the higher prices.
Inspectors have been patrolling grocery stores, egg and chicken markets, and cooperative societies nationwide to control prices and ensure they won’t rise above the 13% cap. The holy month of Ramadan saw the execution of almost 300 inspections.
According to top local government officials, the MoE and top regional officials collaborate closely to conduct inspections. Some businesses have already received fines for violating the prohibition on price increases during these field visits.
