The Fijian Competition and Consumer Commission has sent a proposal to the Minister for Trade, Cooperatives, Small and Medium Enterprises and Communications, Manoa Kamikamica, to enforce price control on ghee and they are awaiting approval before pursuing legal action regarding the unjustified significant increase in ghee prices.
Some major supermarkets in the Suva-Nausori corridor allegedly increased the price of a 750ml bottle of ghee from an average of $24.02 in August to $31.24.
FCCC Chief Executive Officer Joel Abraham says that ghee will be the first item in the grocery sector market study to come under price regulation.
Abraham says the retail prices of ghee have drastically increased from July 2024 to September 2024.
He says they have been able to identify the sources of this increase and the assessment revealed that the combined markup on ghee is about 53 percent from factory to retail.
FCCC proposes to Govt to enforce price controls on ghee before taking legal action against traders
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One of their short-term recommendations is to place ghee under price control immediately.
Abraham adds they will ensure retailers comply with the regulatory framework, a monitoring mechanism will be developed and implemented by the FCCC.
He adds they will ensure that any controls and reductions at the wholesale level are reflected at the retail level.
He acknowledged the retailers who have reduced ghee prices in the past week, noting that some are selling at cost with a markup price of about 2 percent or even below cost.
