Panel to probe firms halting imports to create shortage

KUWAIT: A herd of sheep is moved to a livestock market in Kuwait. — Photo by Yasser Al-Zayyat

KUWAIT: Government officials issued a stern warning against an alleged plot to manipulate the prices of sheep ahead of Ramadan by some traders after news leaked that traders were planning to limit imports of certain livestock in order to inflate prices.

On Saturday, concerned authorities including Minister of Commerce and Industry Khaled Al-Roudhan, Minister of State for Municipal Affairs Mohammad Al-Jabri, head of Consumer Protection Agency (CPA) Bandar Al-Lafi and other senior officials met to discuss the problem.

Minister of Awqaf and Islamic Affairs and Minister of State for Municipal Affairs Mohammad Al-Jabri condemned a number of livestock importing companies which announced intentions to increase the prices of meat before Ramadan.  The companies have reportedly signed an agreement with each other calling for a collective increase of prices; something that the minister described as 'tampering with food security' in Kuwait.

"Manipulating food security is a crime that will not go unaccounted for," Jabri warned, noting that a special committee had been formed to investigate the matter and that companies found to be engaged in price manipulation would face severe penalties.

The Public Authority for Agriculture Affairs and Fish Resources (PAAFR) also warned that legal action would be taken against companies trying to establish a monopoly over the [livestock] market. In a statement published by KUNA, PAAFR noted that such maneuvers are illicit and prohibited by law, referring to tactics in which some companies dupe consumers into purchasing food commodities at inflated prices.

False shortage, inflated prices

The government noted that already it seems some companies have halted imports of 'certain goods' in efforts to create an artificial shortage and push prices higher, a measure the statement slammed as completely illegal and a threat to national food security. According to official statistics, around 1.5 million sheep are imported annually by some 30 companies, while PAAFR raises around 450,000 cattle to buoy food security.

Minister Al-Roudhan submitted an official request to Consumer Protection Agency to investigate the alleged monopoly plan and fine violators, reported KUNA. Al-Roudhan also directed concerned parties in the ministry to follow up periodically amounts of available livestock, and chilled and frozen meat, and submit a report on the matter.

He asked CPA to receive complaints and prevent consumers from being exploited by traders through either raising prices or controlling amounts of meat at markets.  He urged consumers not to hesitate to send complaints to the ministry if there is a rise in prices, promising that he would follow up the implementation of law to make sure that prices are stable in the holy month of Ramadan. Live sheep prices often skyrocket during Ramadan and especially during Eid Al-Adha.

The Kuwait Livestock Transport and Trading Company (KLTT) reassured the public that it has completed preparations for the upcoming holy month of Ramadan by importing more than 200,000 head of live sheep to cover market needs.

CEO Osama Khaled Boodai said the company is fully up to its responsibilities towards providing local markets with needs of meat. Boodai also stressed that KLTT was ready to provide extra amounts of meat if needed. He also explained that KLTT provides all kinds of fresh, cooled, frozen and processed meats and that sheep prices start at KD 35 per head at KLTT butcheries and through home delivery service and mobile phone application.

By Sara Ahmed