Consumer Protection Association: Increase In The Prices Of Goods Ranged Between 7.5 And 28% During Last Year

Specialists confirmed to Al-Anbaa that the rate of prices of various commodities in Kuwait has increased 28%, which means every citizen and resident is now required to spend an additional 28 dinars on every 100 dinars when he buys his needs.

Specialists now warn that up to 300,000 different commodities whose prices are fixed by the Federation of Societies may see an increase in prices with the application of the Competition Protection Law, which prohibits setting a minimum price, which means the high wave of prices will soon hit the ‘shores’, reports Al-Anba daily.

Kuwait witnessed repeated meetings regarding the cancellation of the Minister of Commerce and Industry’s decision No. 67/2020 to fix prices during the Corona crisis, and the demand for the liberalization of prices, the specialists confirmed that if the Ministry of Commerce and Industry canceled its decision, there would be increases of up to 35%, which needs to be addressed.

In addition, informed sources confirmed that the government is not absent from the scene and is working diligently to maintain market stability by rehabilitating and motivating companies and suppliers, in addition to periodic follow-up decisions to ban export and re-export of goods that are affected by it, leading to providing financial support to some suppliers in the event of a shortage of local products.

The specialists pointed out that the price increases are due to many factors that sweep the whole world and directly affect the supply chain, including weak production and supply globally, the high cost of shipping by land and sea, partial employment, and lack of employment.

The Chairman of the Board of Directors of the Consumer Protection Association, Mishaal Al-Manea, revealed that the association monitored during 2021 an increase in the prices of many goods in cooperative societies and markets.

He stressed that according to the law, companies can ask cooperative societies to increase their prices away from the union of societies, and if the board of directors refuses, they file a lawsuit according to the text of this article and win them over because the law is in force.

Al-Manea pointed out that there are up to 300,000 different commodities whose prices are fixed by the Federation of Societies, which may witness an increase in prices with the application of the Competition Protection Law, which prohibits setting a minimum or imposing prices.

Al-Manea said that if the Ministry of Commerce and Industry cancels its previous decision to fix prices, which was issued during the Corona crisis, there will be price increases that may reach 35%, which requires rational supervision that takes into account the balance between all parties.

Al-Manea stated that Kuwait is of a special nature, although it is an importing country for most of its needs, which means that it is affected by the supply chain crisis, the rise in the prices of raw materials, and the increases in the country of origin, up to the cost of shipping, which doubled, but the customs taxes in Kuwait are low, which means that the increase we are witnessing The prices is currently unjustified to reach that extent.

In the same context, government sources said that the rise in prices is a global phenomenon during the period of the Corona pandemic, which was reflected on the Kuwaiti market by extension, which pushed towards a rise in the prices of goods and services locally during the pandemic for several reasons, foremost of which is the rise in the prices of all raw materials in the global market, which was followed by a rise in commodity prices in the local market.

This comes in addition to weak global production, and thus weak supply, as the factories’ raw materials reached a waiting rate of 90 days while it decreased to 65, not to mention the high cost of land and sea freight, not to mention the partial operation and lack of manpower, the scarcity of containers, and the high prices of Storage for the scarcity of warehouses.

In terms of influencing meat prices, the sources indicated that the main reason is due to the spread of diseases and epidemics in the exporting countries, which affect meat prices in the local market due to the lack of imports. This comes in addition to a global rise in feed prices that directly affects prices.

The sources revealed that the Ministry of Commerce and Industry monitors the situation in all markets around the clock in order to prevent any artificial price hikes or manipulation of the capabilities of citizens and residents, indicating that it has taken several measures to reduce prices, especially the prices of food commodities, not to mention maintaining balance in the market through qualifying and motivating companies that supply necessary goods and merchandise, banning the import and re-importation of some food and necessary goods and merchandise, providing financial support to some suppliers of food and necessary goods in the event of a shortage in local production, cooperating with government agencies to overcome obstacles facing companies and suppliers, facilitating classification procedures, and extending licenses Import, as well as the issuance of a decision by the Minister of Commerce to fix prices and foodstuffs during the pandemic.

In turn, the Executive Director of the Federation of Kuwaiti Shipping Companies and Agents, Ahmed Eid, explained that the maritime transport sector witnessed double increases in the cost of transportation during the Corona periods, until the end of the year 2021, and attributed this to several reasons, chief among them:
1 – The lack of ships and a shortage in the number of containers, due to the increased demand for consumables, which affected the carrying capacity of ships and the lack of sufficient space for transporting cargo containers.
2 – The presence of restrictions in international ports, a shortage of stations, and a shortage in the number of workers, led to the creation of congestion, and the long waiting period for ships to unload the goods.

Eid indicated that a significant decrease in the wages of 40-foot containers has been observed during the current period.

Eid stated that the report issued by the United Nations Conference on Trade and Development (UNCTAD), regarding the review of maritime transport 2021, stated that until the disruptions in shipping and supply chains stop, and the restrictions imposed in global ports and container terminals are addressed, global import prices may rise by 11% and prices for consumables by 1.5% between the now and 2023.

Eid added that the report touched on the need to work on finding new solutions that include, among other things, the infrastructure and technology for shipping, digitization, and trade facilitation measures, expecting that there will be large-scale transformations in maritime transport in the presence of the epidemic.

Regarding the restrictions imposed on receiving ships loaded with goods for Kuwait, Eid pointed out that there is a delay in issuing entry permits for regular ships loaded with importers’ goods, in contrast to what was in place before 2019 with regard to regular ships that visit Kuwaiti ports on an ongoing basis and have a local agent.

A marine agency registration certificate was issued contrary to what is applied in Ministerial Resolution No. 282/1980, and he referred to the high daily rental cost of ships carrying goods.

Eid concluded that the union, in cooperation with the Kuwait Ports Authority, is working hard to harness and overcome all difficulties and problems to facilitate the entry and exit of ships loaded with importers’ goods, and to prevent delays for international ships loaded with goods.

6 reasons behind the rise in prices globally:
1 – Weak production and supply globally
2 – The high cost of freight by land and sea
3 – Partial employment and lack of labor
4 – Rising global feed prices
5 – Rising storage prices and scarcity of containers
6 – Diseases and epidemics in meat exporting countries

Six measures are taken by the Ministry of Commerce and Industry to maintain the balance between markets:
1 – Rehabilitation and stimulation of companies supplying goods
2 – Banning the export and re-export of some goods
3 – Financial support for suppliers of some goods in case of shortage
4 – Overcoming the obstacles facing companies and suppliers
5 – Facilitating classification procedures and extending licenses
6 – Decision of the Minister of Commerce to fix prices during the pandemic

 

SOURCE  :   TIMES KUWAIT

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