Qatar: Monopoly of vegetable importers may end soon
Posted by Zawya
The Peninsula
17 June 2010


DOHA: The monopoly of importers of fresh vegetables and fruits and the way the prices of these perishables are currently fixed through auctions at the central market might end soon as the government has plans to overhaul the system sooner rather than later.

The plans come amid increasing public complaints that fruit and vegetable prices in the wholesale market fluctuate on a daily basis and the price of an item can go up steeply all of a sudden
one day.

The Consumer Protection Department of the Ministry of Business and TradeMinistry of Business and Trade has got the go-ahead from the State Cabinet to put a mechanism in place to streamline the supply of fresh vegetables and fruits in the wholesale and retail markets.

The Cabinet, at its weekly meeting yesterday, approved the draft of a decision of the Ministry of Business and Trade to streamline the wholesale and retail trade in fresh fruits and vegetables as also their pricing.

Vegetable and fruit importers currently auction their imports and the prices are fixed after these auctions, depending on the quantum of supplies. If an item is in short supply on a particular day but its demand remains stable its wholesale price goes up, in turn affecting its retail price.

Rules require the retailers to display their prices and there is no mechanism at present by which prices can be controlled by the government.

The civic ministry used to monitor the pricing of fresh vegetables and fruits until several years ago. But the trade was liberalised later and the importers were given a free hand to fix the prices through auction. The auctions had also been stopped earlier but have lately resumed, it is learnt.

© The Peninsula 2010

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