The UAE Ministry of Economy and Bani Yas Cooperative Society have signed a Memorandum of Understanding (MOU) pegging the prices of 56 basic food commodities to 2007 levels. The MOU was signed at the Abu Dhabi headquarters of the Ministry of Economy on Tuesday by Mohammed Ahmed bin Abdulaziz Alshihhi, undersecretary, UAE Ministry of Economy; and Saeed Khalfan Matar Romaithi, managing director of the Bani Yas Cooperative Society, in the presence of ministry officials and cooperative representatives. Alshihhi confirmed that the signing of the MOU with the Bani Yas Cooperative Society is in line with a series of initiatives and actions taken by the Ministry of Economy as part of its responsibility to reduce the prices of various goods and services; aiming to maintain market balance and reduce inflation to implement the national strategy of achieving economic and social stability in the domestic market. He also emphasized the significance of the timing of the signing of the MOU with Bani Yas Cooperative Society and with other societies and private companies operating in the domestic retail sector at a point when global data point to a rise in food prices in world markets. These efforts have the potential to lessen the negative impact of this global problem on the local market and contribute in stability and balance both in the present and the immediate future. “Although the increase in food prices is a global problem affecting most countries in the world, we will still continue our efforts in collaboration with other concerned parties to bring down high prices in the domestic scene caused by monopoly or exploitation, which threatens the stability of the market. These initiatives are part of government and overall efforts to reduce the rate of inflation through economic and social policies that control the prices of goods and various services,” said Alshihhi. He said the Ministry of Economy, in cooperation with other concerned parties, will continue to vigorously fight any monopoly or exploitation that could threaten market balance, explaining that the task of maintaining market stability and consumer protection are not confined to the Ministry of Economy, but are rather shared responsibilities that combine federal and local efforts with the vigilance of civil societies to stop negative practices that are detrimental to the consumer, the community and the national economy. Alshihhi lauded the positive response of Bani Yas Cooperative Society to the invitation of the Ministry of Economy, saying: “This response to the initiatives of the Ministry of Economy to stabilize prices at 2007 levels confirms the vital and effective role to be played by cooperatives in the state and their desire to achieve stable commodity prices and maintain market balance.” He stressed the importance of the role of cooperative societies in meeting the local market's need for goods at competitive prices through direct importation of several food commodities from their basic sources, as they succeed in creating a parallel market to curb unjustified price hikes and contribute to the fight against monopolies and exploitation, which undermines the concept of market competition. He further explained that the Ministry of Economy has launched an initiative to stabilize prices in cooperative societies and major retail centers in the UAE, in direct collaboration with cooperatives, private companies and major suppliers of goods and food products, so as to ease the burden of the citizens and residents of the UAE. __
