The UAE's Ministry of Economy has approved an increase in the prices of eggs and poultry products capped at 13 per cent and clarified that the move is temporary.
The ministry said the increase is based on a resolution it issued on March 6, adding that the step was taken following a request submitted by a number of companies operating in the sector claiming that they had incurred significant losses over the last period as a result of higher production and shipping costs.
According to the Ministry, it conducted an analytical study to determine demand in collaboration with a specialised advisory team on the prices of egg and chicken products, which concluded that a justified increase could range between 13 and 20 per cent.
The study's findings were then submitted to the Supreme Committee for Consumer Protection, which recommended that the raise be approved at a maximum rate of 13 per cent.
The Ministry made it clear that the price increase would help shield poultry and egg producers from the adverse effects of high production costs and lessen their impact.
This would ensure that the producers could continue to sell eggs and poultry products in the country's markets at reasonable prices and in sufficient quantities to satisfy all consumer demands across the country without compromising supply chains and market efficiency.
“Should the grounds that gave rise to the resolution cease to exist, the resolution itself would cease to exist, considering the changes in the local, regional, and global marketplaces,” the ministry added.
Temporary increase in egg, poultry prices aim to ensure balanced merchant-consumer relationship: Ministry of Economy#WamNews https://t.co/F2cbxfJYQr pic.twitter.com/NJiufEHpCR— WAM English (@WAMNEWS_ENG) March 18, 2023