Abu Dhabi: The UAE Ministry of Economy (MoE) has revealed that the Ministry, in collaboration with economic departments and regulatory authorities at the local and federal levels, is continuously monitoring 300 highly sought-after basic commodities in the marketplace.
The MoE is tracking prices at 40+ outlets and cooperative societies in all markets in the country to keep the prices of these commodities under the threshold.
The 300+ commodities tracked by the Ministry belong to 11 main categories, namely; Fish and Seafood, Meat and Poultry, Breads, Grains and Related Products, Dairy, Eggs, Oils, Vegetables and Fruits, Water, Juices and Cleaning Materials.
The MoE has reportedly evaluated how much these commodities are influenced by international developments and price fluctuations in their countries of origin. The entity also monitored steep fluctuations in prices and ensured the availability of these commodities in abundant quantities to meet the needs of consumers and maintain the strategic stock of essential commodities.
The Ministry continues to compare selling prices of these goods with their prices in its registered database and with the prices in neighboring countries. A shared digital database for commodity prices in GCC markets is also under development to ensure flexible, fast and continuous price comparisons.
The Authority also added that it matches the prices of these commodities with the FAO International Price Index for the most traded commodities in the world.
NEW POLICY FOR PRICING MECHANISM
The Ministry has formulated a new policy towards pricing mechanism for basic consumer goods which divides commodities into 2 main groups.
Group 1 includes more than 11,000 commodities, including but not limited to Fresh and Dry Milk, Fresh Chicken and Eggs, Bread, Flour, Sugar, Salt, Rice and Legumes, Cooking Oil, Mineral Water.
Sellers of Group 1 commodities would have to gain prior approvals via the Ministry of Economy website to raise the prices of these goods.
The applicants must submit all evidence and data related to the increase in costs and their direct causes. The Ministry will then decide on the approval and the percentage of the approved price hike.
Traders of Category 2 goods are exempted from seeking any approvals from the MoE to hike the prices of the commodities as they are mostly subject to supply and demand variations.
These goods were chosen based on their abundance, high price competitiveness, and a large number of suppliers of these goods to ensure the existence of multiple alternatives in the country.
This Category includes a limited category of goods such as, Biscuits, Chocolates, Confectionaries of All Kinds, Some Cheese Products, Frozen Food Products, Juices and Ice cream, Tea, Coffee, Cocoa and its Products, Wheat, Oats, Potato Chips, and Household Cleaning Materials and Tools of All Kinds.