Supply chain, price hikes in gov't crosshairs

Arab Times

12-05-2025

KUWAIT CITY, May 12: Minister of Commerce and Industry Khalifa Al-Ajeel has issued Ministerial Resolution No. 33/2025 on the formation of the Central Committee for Price Studies, Inflation Monitoring, and Supply Chains. The decision, which was published in the official gazette 'Kuwait Al-Youm', states the following:
Article 1: A central committee shall be formed in the Ministry of Commerce and Industry under the name 'Central Committee for Price Studies, Inflation Monitoring, and Supply Chains'. It will be chaired by the ministry's undersecretary, and will include representatives from the Ministry of Commerce and Industry, the Ministry of Social Affairs, the Family and Childhood Affairs Department, Kuwait University, the Union of Consumer Cooperative Societies, the Kuwait Institute for Scientific Research, the Public Authority for Food and Nutrition, the General Administration of Customs, the Kuwait Fire Force, Kuwait Supply Company, the Competition Protection Agency, the Consumer Protection Society, the Central Statistical Bureau, the Kuwait Poultry Producers Union, the Union of Distributors of Consumer Goods for Wholesale and Retail Trade, and the Kuwait Union of Food Traders and Manufacturers. All members must hold a position no lower than director of a department or its equivalent.
The committee may also consult experienced and specialized individuals when necessary, provided they do not have voting rights. Article 2: The Central Committee shall be responsible for the following tasks:
1. Monitoring and regulating prices in local markets, and establishing controls and mechanisms to ensure price stability.
2. Studying local inflation rates and proposing appropriate recommendations to address and mitigate their impact.
3. Monitoring supply chains to ensure their strength and efficiency, and submitting proposals that support the continuous flow of goods and services.
4. Promoting market competitiveness by recommending policies that encourage manufacturers and importers to provide goods in adequate quantities and at reasonable prices.
5. Combating commercial dumping and protecting national products, in accordance with relevant regulations, particularly Ministerial Resolution No. 222/2024 on construction materials. 6. Reviewing reports submitted by subcommittees, making appropriate decisions, and presenting periodic reports to the minister.
Article 3: The Central Committee may, by its own decision, establish specialized subcommittees as it deems appropriate.
These may include, but are not limited to, the following:
1. Price Monitoring Committee:
- This committee shall analyze and monitor price trends in the market and prepare periodic reports.
- It shall work on adjusting prices, introducing new products, and providing relevant recommendations to ensure market balance.
- The committee shall monitor the effects of price changes to maintain stability and protect consumers from unjustified price hikes.
- It is also responsible for approving price increases for goods. No price increase may be implemented without a decision from this committee. Any unauthorized price increase will be considered illegal.
2. Inflation Rate Monitoring Committee:
This committee shall be responsible for the following tasks: - Studying local and international inflation factors and analyzing their impact on local markets. - Assessing economic variables influencing inflation rates and providing recommendations to reduce their negative effects. - Monitoring global price trends, Interevaluating their impact on import costs, and analyzing their implications for the local market.
3. Market and Supply Chain Regulatory Committee:
This committee shall be responsible for the following duties:
- Establishing controls and procedures to regulate supply and demand in the markets in order to prevent crises and maintain market balance.
- Proposing policies to enhance supply chain efficiency and minimize disruptions that could impact the flow of goods and services.
- Regularly evaluating supply chain performance and identifying challenges that may hinder smooth operations.
- Coordinating with relevant authorities to implement solutions that ensure the uninterrupted flow of goods and services.
- Making recommendations to develop logistics infrastructure and improve storage and distribution systems.
- Monitoring the compliance of suppliers and traders with market regulations and taking corrective measures when necessary.
4. Strategic Stockpile Follow-up Committee:
This committee shall be responsible for the following tasks:
- Monitoring the levels of strategic stockpiles for essential commodities to ensure their continued availability and meet consumer needs.
- Developing plans and procedures to strengthen the strategic stockpile.
- Coordinating with relevant authorities to ensure the uninterrupted supply of food and consumer goods during crises and emergencies.
- Tracking changes in demand for essential commodities and proposing measures to deal with potential market shortages.
- Preparing periodic reports on the status of the strategic stockpile and recommending actions to ensure its stability and adequacy.
Article 4: The Central Committee shall follow up on the recommendations submitted by its subcommittees. It is authorized to assign additional responsibilities as required by work demands and developments.
The committee may also form new subcommittees as needed, subject to the minister's approval.
Article 5: Each subcommittee shall submit periodic reports to the Central Committee under its assigned responsibilities.
Article 6: The minister shall issue a decision to form a team for the Secretariat of the Central Committee and its subcommittees, which will be responsible for carrying out the following tasks:
- Recording the minutes of meetings held by the Central Committee and its subcommittees.
- Communicating with relevant institutions and following up on the implementation of decisions made by the Central Committee and its subcommittees.
- Submitting periodic reports (every three months) to the minister, highlighting the most important activities and decisions of the Central Committee and its subcommittees.
- The Secretariat shall carry out any other tasks assigned by a decision from the minister.
Article 7: The minister shall issue a decision to form a Grievance Committee responsible for examining grievances submitted against executive decisions made by the Central Committee or its subcommittees.
Article 8: No financial rewards shall be allocated to members of the Central Committee or its subcommittees for their participation in its work.
Article 9: Decisions Nos. 62/2020, 67/2020, 75/2020, 79/2020, 96/2020, and 97/2020, as well as any provisions that conflict with this decision, shall be revoked.
Article 10: This decision shall be effective from the date of its issuance and will be published in the official gazette 'Kuwait al-Youm'.
The relevant authorities shall implement the provisions of this decision within the scope of their jurisdiction