The Ministry of Economy (MoE) in the United Arab Emirates (UAE) issued a warning on Tuesday regarding increased fines for retailers and suppliers who raise the prices of eggs and poultry products beyond the 13% limit.
According to the details, the minimum fine imposed will be AED 10,000, with repeat violations resulting in a penalty of up to AED 200,000.
The MoE earlier gave permission for a temporary increase in the prices of eggs and poultry products. It conducted a study and found that a price hike ranging from 13% to 20% was reasonable, but the Supreme Committee for Consumer Protection (SCCP) recommended a maximum increase of 13%.
The decision was made after requests from companies in the sector who were facing losses due to high production and shipping costs, as well as increased prices of raw materials like fodder.
Poultry products are considered essential commodities, and the Ministry’s decision was intended to stabilize the sector while protecting consumers from excessive price hikes.
The Ministry took into account the high global and regional prices of raw materials such as fodder, fuel, and vaccinations used in egg and poultry production, as well as the high cost of importing these products from countries such as Russia and Ukraine, which are the primary suppliers of grains in the feed industry worldwide.
It is pertinent to mention here that the Ministry will review the decision in five months in order to determine whether to lower or retain the higher prices.
