The Ministry of Commerce and Industry said after the Eid holidays, it will cancel its earlier decision which was issued to regulate the food prices after reviewing the causes and repercussions of the decision on the local market.
The sources pointed out this came after a group of companies (food suppliers) met Minister Fahd Al-Shariaan and conveyed to him the changes that have occurred in global markets, which led to fundamental adjustments in prices and explained the difficulties they face because of the ministry’s control on food prices. They added, they face difficulties in ensuring adequate food supply in the Kuwaiti market if the decision to fix prices continues, because it puts the suppliers under pressure to bear the cost difference, reports a local Arabic daily.
The sources indicated in recent times several food cargoes were diverted to other Gulf countries due to the price difference which sometimes reached 20 percent.
The sources indicated the food suppliers said it is surprising all other decisions related to the Covid-19 pandemic, have been cancelled while only the decision related to price-fixing has remained, despite the changes that have taken place and the increasing global demand for food commodities in an unprecedented manner, which raised their prices to unprecedented rates as well, in addition to the complications imposed by the Ukraine war, which increased the problems of global transport chains.
The move of the companies in this direction comes at a time when the World Food and Agriculture Organization Price Index has recorded a big jump in March in the cereal index by 170.1 points, an increase of 24.9 points (17.1%) from its level recorded in February, to reach, however, its highest level since 1990.