The Economic Committee of the Council of Ministers witnessed, during its last meeting, heated discussions, about the challenges that put pressure on food security and stability of prices of main commodities in the local market.
The sources indicated that the committee discussed at least 5 major local obstacles that threaten the government’s efforts to maintain the stability of the price system, reports a local Arabic daily.
During the committee’s meeting, Minister of Commerce and Industry Fahad Al-Shariaan called for the need to take several steps to mitigate the effects of high global prices resulting from unprecedented economic, military and political conditions at the global level, in a way that contributes to strengthening the food security system in the country.
The sources revealed that during the meeting, which was chaired by Deputy Prime Minister and Minister of Oil Muhammad Al-Faris, the outstanding challenges were summarized as late payment of supplier invoices which weakens their liquidity and flows; documentary cycle of food inspection which leads to disruption of the course of movement of goods; the absence of support to agricultural and livestock support makes the task difficult.
To add insult to injury there is lack of sufficient government stores; free offers by coops which are considered illegal but efforts must be made to keep the prices low.
Concerning the lack of stores available in the country, as it was emphasized that the lack of sufficient storage space wasted the opportunity to store supplies from international suppliers.
The sources pointed out that it was emphasized that this problem reduces the chances of consolidating the stockpile and providing goods in the local market at reasonable prices.
As stated during the committee meeting some late payment of invoices are delayed up to 6 months and this weaken the ability to continue the flow of goods to the coops.
Officials of supplier companies complain tens of millions of dinars remain unpaid for reserved for them for months in the associations’ accounts, and that they were waiting for their release to be redirected to buy more goods.
In order to achieve financial balance, and continue to support the system to protect price stability in Kuwait, the possibility of the state providing additional facilities to coops was reviewed in exchange for giving up their incentives to increase prices, such as reducing the price of state property prices that cooperatives can benefit from, and reducing or not charging them any cost.
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