Cabinet has approved the Commerce Price Control, Percentage Control of Prices for Food Items Order 2010, which is an interim pricing order by the Commerce Commission to control prices of specific food items.

The decision is based on a submission by the Attorney General and Minister for Public Enterprises, Aiyaz Sayed-Khaiyum.

The Price Control Order is an interim pricing order by the Commerce Commission to control prices of specific food items which were price controlled either by the non imposition of duty or otherwise.

The Attorney General said that Cabinet endorsed Government's Budget for 2008 to 2010 which allowed for the exemption of fiscal together with import duties on certain food items including canned fish, edible oil, onion, garlic and rice by imposing zero duty.

He said that apart from the fiscal and import duty exemption, Government through powers given to the Commerce Commission has also controlled the prices of certain food items which are viewed as a basic component of family diets in Fiji.

He said that these price control and zero duty mechanisms were meant to "cushion" consumers from the impact of increasing costs of food items worldwide, however the full impact of zero duties have not flowed on to the consumers.

Sayed-Khaiyum said that under the Commerce Price Control, the Commerce Commission will impose an appropriate pricing formula that ensures minimum mark up costs are imposed and there is no "double dipping" by importers, wholesalers or retailers.
 
The Attorney General said that the Order will also allow the Commission to ensure evidential documentation of costs incurred prior to approving pricings.


Story by: Ana Naisoro