Rice importers fined for hiking prices

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(Photo for illustrative purpose only)

(Photo for illustrative purpose only)

A Saudi Government committee has fined several rice importers SAR40 million ($10.67m) after they were found to have colluded to reduce the weight of rice packets and hike prices, it was reported.

It comes amid accusations that some rice importers were also draining the market of rice stocks to bolster returns.

Minister of Commerce and Industry Tawfiq Al Rabiah, who is also chairman of the Council of Competition Protection (CCP), said a committee investigating the matter found rice merchants had mutually agreed to reduce the weight of rice packets and hike prices.

According to Article 12 of the Competition Law, a fine of up to SR5 million ($1.33m) will be imposed for each violation.

It will be doubled in the case of repeat offences, with details of the verdict publicised at the expense of the violator.

Al Rabiah said the law was aimed at ensuring fair competition by compelling traders and importers to curb practices that monopolised the market, he said.

Muhammad Al Qassem, Secretary General of the Council, said it had been noted rice importers were draining the market of rice stocks and before increasing prices.

“These companies informed their customers about the new hike without notifying them or explaining the reasons for increasing prices,” he was quoted by the Saudi Gazette as saying.

The rice importers can appeal against their penalties to the Court of Grievances, the Ministry of Commerce said in a statement.

The Council will publish their names after a final verdict.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Is this the end of the Gulf’s Indian cash dash?

Is this the end of the Gulf’s Indian cash dash?

From currency woes to taxation loopholes closing and a clampdown...

2
Q&A with Dubai Chamber

Q&A with Dubai Chamber

We spoke with Essa Al Zaabi of Dubai Chamber of Commerce to find...

The politics of big data

The politics of big data

The UAE may be one of the fastest adopters of e-government initiatives...

Most Discussed
  • 23
    Why Qatar developers struggle despite construction boom

    Lets be fair, Dubai and Doha cannot be compared. Not only Dubai is ahead of Doha by more that 20+ years, but the UAE have the MENTALITY that Qatar unfortunately... more

    Saturday, 30 August 2014 1:43 AM - Mike
  • 7
    Saudi Arabia seeks talks on hiring of Sri Lankan maids

    I completely agree that Sri Lanka should not send any House Maids. Women should not be the solo breadwinner and destroy the life's of the children who... more

    Saturday, 30 August 2014 5:02 PM - Zaffe
  • 2
    Visitor beware

    It is absolutely disgusting to see the level of biasedness in this article and in AB in general.
    You pretty much slammed the entire 5-nations of the... more

    Tuesday, 26 August 2014 2:08 PM - RAH