UAE clamps down on price rises for staple foods including rice, eggs and cooking oil

The UAE on Tuesday set out new measures to bolster price controls on staple foods, with a minimum six-month gap between increases, to protect consumers.

The Ministry of Economy announced federal decrees to come into effect on January 2 to tighten regulations on charges to customers for nine items: cooking oil, eggs, dairy, rice, sugar, poultry, legumes, bread and wheat. These regulations also cover some related items, along with prices for cleaning products, the ministry said.

The ministry said the policies, which will complement existing rules on the sale price of food products, would provide additional government oversight and allow customers to act against suppliers and retailers flouting the law.

Under the directives, prices can only be raised with approval from the ministry. A task force is to be established to monitor prices, review requests to increase them and address complaints.

The strengthened laws aim to guard against price fluctuations “caused by unforeseen circumstances or external economic changes”, the ministry said.

Shops and online retailers with premises exceeding 1,000 square metres will be mandated to display prices per unit “in a clear and understandable manner using standardised units of measurement for each product”.

Abdullah Al Saleh, undersecretary of the Ministry of Economy, said the display pricing directive aims to promote transparency and provide consumers with accurate information. It also aims to “foster fair competition among products by considering their unit price rather than solely relying on overall promotional prices currently in the market”, said Mr Al Saleh.

Global food prices rose to their highest level in 18 months in October, data from the UN Food and Agriculture Organisation showed. Vegetable oils saw the largest price increases among the most basic food commodities.

In March last year, the UAE allowed retailers to temporarily charge up to 13 per cent more for eggs and poultry products due to higher production costs from suppliers. The decision was designed to protect producers from soaring overheads and keep prices to consumers stable.

In July last year, it was announced that inspectors monitoring supermarkets and grocery shops in the UAE had detected more than 100 violations by retailers who raised the price of essential items.

A total of 125 sellers were found to have increased the price of groceries such as chicken and eggs between April and July 5, despite a government limit in place to protect consumers.