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Commerce Ministry steps in to curb baby food price
The Ministry of Commerce and Industry has intervened to contain the soaring prices of baby milk products imported to the Kingdom.
Abdul Rahman Al-Abdul Razaq, undersecretary for consumer affairs at the ministry, said a committee comprising representatives of the ministries of commerce, finance and agriculture, is currently carrying out studies with regard to the prices of various baby formula products, Al-Eqtisadiah business daily reported on Saturday.
“The committee will hold its meeting shortly to come out with proposals and measures to rein in the unreasonable hike in prices of various baby milk products,” he said.
As part of the initiative, the ministry had recently sent a letter to the Ministry of Finance asking it to strictly enforce its new regulation that all baby milk importers must make only a marginal and reasonable profit and that they should place price tags on their subsidized containers.
In the letter, the ministry also said the government subsidy must be restricted only to those products with price tags. The ministry’s initiative was in response to a number of complaints that it had received with regard to soaring prices of various baby formula products, even after the government announced a subsidy of SR12 per kilogram.
Al-Abdul Razaq said his ministry’s new initiative would curb the reckless practice of some importers that implement exorbitant hikes in the prices of baby milk products.
“This is also aimed at achieving stability in the prices of an essential consumer product, as was the case with a similar measure implemented earlier in regulating the prices of pharmaceutical products,” he said, describing this move as the safest way to protect the interests of consumers.
According to the ministry official, the concerned committee would listen to the views of baby formula importers while implementing the new regulation.
“Inspection squads from the ministry earlier conducted intensive raids on shops and pharmacies selling baby milk products as part of its efforts to pinpoint the real causes of price rises. The inspection teams managed to secure invoices after purchasing the product from main importers as well as local dealers,” he said, adding that the ministry is also monitoring the prices of these baby formula products in the global market.
According to Al-Abdul Razaq, it has come to the notice of the ministry that importers, distributors and traders of baby milk are all involved in the price hike of some of their brands. Frustrated over the soaring prices of various baby milk products as well as inconsistent prices among shops, several consumers lodged complaints with the Ministry of Commerce seeking its intervention. Subsequently, the ministry sent a letter to the Ministry of Finance last week.
In 2007, the Saudi government increased subsidies for baby milk from SR2 to SR12 per kg as part of efforts to reduce the burden on the public caused by soaring prices.
The Ministry of Commerce and Industry has intervened to contain the soaring prices of baby milk products imported to the Kingdom.
Abdul Rahman Al-Abdul Razaq, undersecretary for consumer affairs at the ministry, said a committee comprising representatives of the ministries of commerce, finance and agriculture, is currently carrying out studies with regard to the prices of various baby formula products, Al-Eqtisadiah business daily reported on Saturday.
“The committee will hold its meeting shortly to come out with proposals and measures to rein in the unreasonable hike in prices of various baby milk products,” he said.
As part of the initiative, the ministry had recently sent a letter to the Ministry of Finance asking it to strictly enforce its new regulation that all baby milk importers must make only a marginal and reasonable profit and that they should place price tags on their subsidized containers.
In the letter, the ministry also said the government subsidy must be restricted only to those products with price tags. The ministry’s initiative was in response to a number of complaints that it had received with regard to soaring prices of various baby formula products, even after the government announced a subsidy of SR12 per kilogram.
Al-Abdul Razaq said his ministry’s new initiative would curb the reckless practice of some importers that implement exorbitant hikes in the prices of baby milk products.
“This is also aimed at achieving stability in the prices of an essential consumer product, as was the case with a similar measure implemented earlier in regulating the prices of pharmaceutical products,” he said, describing this move as the safest way to protect the interests of consumers.
According to the ministry official, the concerned committee would listen to the views of baby formula importers while implementing the new regulation.
“Inspection squads from the ministry earlier conducted intensive raids on shops and pharmacies selling baby milk products as part of its efforts to pinpoint the real causes of price rises. The inspection teams managed to secure invoices after purchasing the product from main importers as well as local dealers,” he said, adding that the ministry is also monitoring the prices of these baby formula products in the global market.
According to Al-Abdul Razaq, it has come to the notice of the ministry that importers, distributors and traders of baby milk are all involved in the price hike of some of their brands. Frustrated over the soaring prices of various baby milk products as well as inconsistent prices among shops, several consumers lodged complaints with the Ministry of Commerce seeking its intervention. Subsequently, the ministry sent a letter to the Ministry of Finance last week.
In 2007, the Saudi government increased subsidies for baby milk from SR2 to SR12 per kg as part of efforts to reduce the burden on the public caused by soaring prices.
