Vegetables In Cooperatives Are 500% More Expensive

The Competition Protection Authority studied the lack of data transparency in examining the auctions of fruits and vegetables in Kuwait, Al-Rai reported.

In the study on improving the performance of the agricultural food auctions market, it was indicated that there is a wide difference between the daily prices announced in official auctions and the prices offered in cooperative societies and parallel markets, reaching more than 500 percent.

This also indicates that the profit margin for intermediaries suppliers. In cooperative societies, the prices offered in the societies are many times higher.

To address market conditions, the study recommended, in the short term, reforming the land allocation process by adopting a competitive annual allotment of land for commercial production, ensuring the anonymity of the seller in the Kuwait Farmers Union auction, in addition to adopting direct purchase by representatives of cooperative societies in the auction and canceling mediator role. In the medium term, the study recommended the introduction of an electronic platform to operate the auction in the farmers’ union market and any similar auction markets.

 

SOURCE: TIMESKUWAIT

Comments Post Comment

Leave a Comment

Submit