Kuwait Times

Published Date: January 24, 2010

KUWAIT: Local cooperative societies are introducing a series of price rises on various basic commodities ranging between five percent and 154 percent, making Kuwait one of the most expensive countries in the region.

The move, which follows the introduction of steep increases in local suppliers' prices, has brought complaints from many consumers, both local and expatriate.
The price rises are particularly frustrating for consumers since the recent global economic crisis is well on its way to being resolved.

Riyadh Al-Adasani, the CEO of the Nuzha Co-op, said that more than 88 items there will see significant price increases in light of the absence of price-fixing legislation in Kuwait, warning that this will have a significant effect on citizens and residents alike.

Among the prices seeing the most massive price increases, Al-Adasani explained, are rice, with sacks set to rise in price by over KD 4.500, while lentils will triple in price from KD 3.400 to KD 10.350 and anise will rise by more than 2.5 times, going from KD 10 to KD 27 per sack.

Al-Adasani said that the suppliers had failed to provide justification for the price increases, as well as failing to supply invoices from the manufacturers and growers in the originating countries. He suggested that the rises stemmed from the suppliers' aims to make massive profits at consumers' expense despite already making sizeable profits and not needing to raise prices.

The Co-op head also criticized the Ministry of Commerce for its failure to take action against the suppliers' steep price increases, as well as for its failure to monitor prices in order to prevent such abrupt rises and protect consumers from suppliers' greed.