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Abu Dhabi: Many small shops and groceries across the country are exploiting the commitment made by major retailers to the Ministry of Economy to sell selected basic commodities at 2007 prices or cost price, according to businessmen and officials.
Most small retailers in Abu Dhabi, such as grocery stores and supermarkets of B and C classes are buying the items from the major retailers and making profit for themselves.
"We are forced into this practice, as we do not get enough basic goods to meet demand," said an owner of a class C supermarket.
"For instance, if we take flour, the Abu Dhabi Grand Mills only provides the major retailers with their needs, while we only receive a small fraction of what we request," he said.
The Ministry of Economy maintains that small retailers are asking for more than they need and they get what is deemed sufficient.
"These retailers are asking for more than what they actually need, and giving preference to the major retailers is for the simple reason that they account for 70 per cent of the market in Abu Dhabi," Dr Hashem Al Noueimi, director of the consumer protection department in the Ministry, told Gulf News.
Consumers have been complaining of shortages of some basic items after the Ministry announced the agreement with major retailers, a result of excessive demand from small retailers.
Large supermarket chains are trying to curb the phenomenon through maximum quotas relative to overall purchases other than the basics, or through strict supervision at the cashiers.
"We have placed supervisors throughout our stores to ensure that the basics end up with the consumer, based on our experience in identifying genuine customers," Saifee T. Rupa-wala, Emke Group's chief executive officer said.
"Nevertheless, there can never be 100 per cent security against such practices, but we try our best to control the matter."
The ministry is maintaining a firm stance against small retailers who get caught with the deed, imposing fines and other disciplinary measures according to the prevailing laws.
"Violators will have to face serious consequences, as the exploitation of consumers makes them subject to the Decree Number 466 for 2007, entailing severe penalties," Dr. Hashem warned.
Small retailers maintain that they do not exploit consumers with such practice, as they provide other services such as selling on credit and free delivery.
"Sometimes what is most important for our customers is to get the necessary item in the first place. Further, they do not mind to pay extra for our free delivery and monthly credit services," the supermarket owner explained.
Should groceries be banned from indulging in such practices? Do you the the MoU's ahve worked? Why?
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