The Minister of Commerce and Industry and Minister of Affairs Fahd Al-Shariaan issued a decision regarding the support and promotion of the local agricultural product in the cooperative societies.
The decision stipulates in its second article that cooperatives are obligated to purchase local agricultural products by participating in the daily auction at approved marketing outlets, at a rate of no less than 75% of their needs and according to the level of production, supported by invoices from approved marketing outlets, reports a local Arabic daily.
The third article says the cooperatives must notify the Department of Cooperative Control and Inspection at the Ministry of the appointment of a representative from within the association’s staff entrusted with the task of attending auctions at approved marketing outlets to purchase local products, and priority for appointment is given to Kuwaitis.
In the fourth article, the cooperative sets a fixed profit margin on its purchases of all agricultural products at a rate of no more than 20%.
According to Article 5, the coop is obligated to pay the dues of suppliers within a period not exceeding 15 days from the date of supply, and in accordance with the point of sale system and electronic clearance approved by the association.
According to Article 6 of the resolution, the coop bears the value of the daily collection of local agricultural products.
Article 7 of the resolution stipulates that the coop adheres to the rules of hygiene and quality when displaying agricultural products, whatever their source, and must ensure it does not threaten the health of the consumer.
In the eighth article of the resolution, the association is prohibited from displaying and promoting agricultural products without placing a barcode, country of origin, weight and name of the variety.
In the ninth article of the resolution, the association must place an advertisement board in front of its central markets and mini-branches with the prices of agricultural products.
Article 10 of the resolution stipulates that the association performs a daily price comparison with a number of at least 3 cooperative societies and provides the observer with a certified statement in this regard, provided that the names of the approved associations are changed weekly to compare prices.
In Article Eleven, local agricultural products approved by the competent authorities are exempted from all conditions and restrictions placed by cooperative societies on other products.
The twelfth article states, the observer must review on a daily basis the direct purchase invoices and monitor them through points of sale, and he must prepare a monthly report on the extent to which the association respects the obligations imposed on it pursuant to this resolution along with the violations committed by it, if any, and a detailed list of the names of the suppliers with whom the association dealt during The relevant period, provided that this report is submitted to the Cooperative Monitoring and Inspection Department charged with following up the implementation of this decision, in order to take the appropriate measures in this regard in accordance with the law and the decisions regulating cooperative work.
Sources said that this decision would correct the conditions of direct purchase of associations from Kuwaiti farms according to specific controls and conditions, noting that the decision eliminates the monopoly of the Kuwaiti agricultural product and directly contributes to its support and increases competitiveness in the market, which is positively reflected in the interest of consumers by lowering prices and increasing the quality of agricultural products offered through associations.