KUWAIT CITY, Jan 27: The Ministry of Commerce and Industry is determined to refer companies it will uncover encouraging the price hike to the Commercial Prosecution for legal action , reports Al-Anba daily.
The daily quoting the Director of Commercial Surveillance at the Ministry of Commerce and Industry Rashid Al-Hajri revealed the ministry will address a letter to the Undersecretary of Ministry Social Affairs and Labor Mohammed Al-Kandari concerning the prices of foodstuff which some companies have sent letters to the cooperative societies to increase, and will pursue legal action against those companies, if they are stimulating the increase of commodities.
He added a committee has been formed by the ministry for this purpose, while the ministry has not received any complaints about increase in prices of foodstuffs since the Department of Commercial Surveillance activated its role suddenly.

He went on to say minor commodities have experienced the price hike, noting the National Assembly discussed in its Monday session activation of the pricing law 1979/10 to supervise merchants, and enquired why some cooperative societies responded to demands by traders to raise the prices of some products, whereas other cooperative societies declined to collaborate with such companies. The companies concerned are reportedly keen on raising the prices of commodities.
For his part, the Chairperson of the Board of Directors of Al-Nuzha Cooperative Society Riyadh Al-Adasani said the cooperative societies sent more than one letter on the prices of products that were increased, indicating the ministry did not fulfill its role efficiently.
Al-Adasani stressed the price of some products have been increased since 2007, considering the unstable prices of oil. He added the ministry replied more than thirty companies which increased the prices of their commodities in November 2008; reflecting the ministry’s approval in that regard. “If Kuwait is a free economy, why has no law been activated to ban monopoly?’’, he argued.

Meanwhile, heads of some cooperative societies have agreed that scrapping the Pricing Committee at the Cooperative Societies Union (CSU) has largely contributed to incessant hikes in the prices of goods as the absence of meaningful control has encouraged traders to exploit consumers, reports Al-Anba daily.
Chairperson of Rawdah and Hawally Cooperative Society Ali Al-Anbaei attributed the recent hike to the rising price of oil in the global market.  He affirmed the society joined hands with 10 others to negotiate as a group with traders after the abolition of the Pricing Committee.
He revealed both parties have reached an agreement to reject any commodity if its price increased by more than 20 percent within a year.  He said the alliance ensures 80 percent adherence to the provisions of this agreement.
“Some big companies have increased the prices of their products.  The alliance cannot control this price hike, so we have resolved to reject goods from companies that increase prices unreasonably,” he added.


Chairperson of Keifan Cooperative Society Meshari Al-Benwan explained the prices vary from one product or company to another.  He admitted it is not possible to enforce price increase without justifications when the Pricing Committee was active.
He craved for the return of the committee due to its positive contribution to price control, because the societies would not have agreed to undue price hikes if the committee still exists.  “We do not want traders to lose while we are concerned about the welfare of consumers,” he asserted.
Chairperson of Ali Sabah Al-Salem Cooperative Society Fahad Al-Ajmi confirmed the Ministry of Social Affairs and Labor approved certain price hikes.  He corroborated the desire of his counterparts to reinstate the committee.  He alleged the ministry pitches tent with traders against interest of consumers, saying the rate at which prices increased over the last three years has been outrageous.
“The union confronted the companies and instructed them to revert to old prices but only few of them have agreed.  Some complied for about a month and then returned to the same prices, claiming all companies were involved in the unreasonable price hike. - Arabtimes