Ministry Of Commerce Faults Coops For Straying From Their Responsibilities

The Ministry of Commerce and Industry confirmed that the spike in prices had a negative impact on the nations that set commodity prices, including Kuwait, due to a decline in commodity supply and smuggling.

According to a local Arabic daily, the Ministry informed the Council of Ministers that the continued submission of some commodities to the pricing system is what has resulted in the interruption of some commodities, revealing that various types of oils are currently being cut off from the Kuwaiti market.

According to the sources, cooperative societies have strayed from their service duty, and some cooperative societies' lack of commitment will result in an increase in the pricing of items sold in these cooperatives.

According to the ministry, reducing the global economy's impact of the food security shock is contingent on Kuwait's ability to control the Corona crisis and strengthen its resilience in the short term; otherwise, the correction will be unsuccessful in the long run.

According to the ministry, the text of Article Three of Decree-Law No(79/10) states: "Some commodities may be subject to the pricing system, and it is issued to specify these commodities and prices specified by a decision of the Minister of Commerce and Industry, listing five disadvantages of price stabilization.

Meanwhile, ministry sources pointed out that those inflationary forces, which arose far faster than expected, and even faster than the inflationary pressures that followed the global financial crisis, are without a doubt a result of the global financial crisis.

The ministry touched on the product's path until it ends up on the display shelf in a presentation to the Cabinet, noting that it includes ports and fees not shown, customs and customs clearance and their fees, regulatory authorities and their fees, and hefty storage rates, among other things.

The state's responsibility in combating global price rises, according to the ministry, is linked to a decision by the Council of Ministers tasked with implementing the recommendations of the Advisory Committee on Prices.

The Ministry of Commerce and Industry has since addressed all relevant agencies, requesting that they implement what is necessary, including the continuation of the ration card system, in order to reduce the impact of worldwide price increases.

A budget has been set aside to cover the rising costs of basic commodities, and the ministry has presented the Council of Ministers with three options for containing the food security shock: liberalizing prices and pricing limited commodities, cancelling the price stabilization decision, or gradual liberalization of prices, noting that the current situation in Kuwait leaves two options: high prices or commodity disruption.

Liberalizing prices and pricing for specific items, cancelling the price-fixing decision, and gradual liberalization of prices are among the three options made by the Ministry.

According to the ministry, the government's involvement in combating global price rises is as follows:

The Council of Ministers made a decision directing the authorities to carry out the recommendations of the commission.

The Ministry of Commerce and Industry has contacted all key authorities to have what they need to be implemented.

The maintenance of the ration card system helps to mitigate the impact of price increases around the world.

To offset the rising expenses of basic necessities, a budget has been set aside.

The ministry presented the Council of Ministers with three options for containing the food security shock: liberalizing prices and pricing limited commodities, cancelling the price stabilization decision, or gradual liberalization of prices, noting that the current situation in Kuwait is caught between two extremes: high prices or commodity disruption.

The following are three suggestions made by the Ministry:

• The first idea is that prices and pricing for specific items be liberalized.
• Ensures that prices do not increase unexpectedly.
• Providing guidance on commodity price
• Cabinet Resolution No. 282 of 2022 is being implemented.
• The second suggestion is to reverse the decision on price-fixing.
• Increase the amount of frozen chicken consumed by each person.
• Increasing frozen chicken support with the 6-month ration
• Cabinet Resolution No. 282 of 2022 is being implemented.

The third option is for progressive pricing liberalization.

• Over a two-month period, control pricing in a way that does not affect price inflation.
• Ensure that the market is in balance with its neighbours.
• Increasing the frozen chicken portion per capita to 3 kilos
• Support per kilogram of chicken was increased for 6 months.
• Cabinet Resolution No. 282 of 2022 is being implemented.

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