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Unpaid milk subsidies fail to curb prices
Published in The Saudi Gazette on 14 - 04 - 2008

The prices of number of milk brands sold at pharmacies and grocery shops in Riyadh are on the rise again.
The London-based Arabic daily Al-Hayat said in a report on Sunday the prices of some of these brands were hiked by five to 10 percent, despite announcements by the government to increase milk subsidies from SR2 to SR12.
A worker at a pharmacy in Riyadh said he had been told by suppliers and traders that the hike was triggered by the fact that the subsidies remain unpaid to date.The worker, who spoke on condition of anonymity, indicated that the prices of all three types of one brand have gone up by five percent each.
He added that the prices of another, more popular brand have skyrocketed, and are expected to remain unchanged in the coming period.
Prices of other, less known brands have increased by as much as 10 percent.
The worker said pharmacists and other pharmacy staff have no say in setting the prices, adding that it is only the owner who has some leeway in pricing what they sell.
Abdullah Al-Aed, the manager of a chain of shopping malls in Riyadh, said that importers have not slashed the prices of milk to date, and that prices are continuing to increase by five- to 10-percent every now and then.
He also indicated that the prices of all milk products, whether for children or otherwise, have remained high since last year, sometimes causing consumers to go angry.
Mohammad Al-Qahtani said that consumers' jubilation over the milk subsidy was stifled by the traders' failure to implement price cuts. __


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