All traders have to follow the new Maximum Wholesale and Retail Prices for basic food items from today or face on the spot fines of $3,000.
Commerce Commission Chairman, Doctor Mahendra Reddy said their inspectors will be on the ground from today to ensure that the retailers follow the order.
He confirmed that the average reduction on the food items is now 9 percent compared to the average reduction of 13 percent which was announced last week.
Some items have also been taken off the list since there are cheaper substitutes available according to the Commission.
The brands of high end products have also been removed including price control for 4kg packs of rice.
Only the 1kg, 2kg and 10kg bags of rice will be under price control while prices of other packs will be determined by the retailers.
All tea bags are off the price control list while bulk tea remains under price control, high end corned beef and corned mutton is now off the list, certain types of baby food is off the list because cheaper local substitutes are available.
However infant formula remains under price control.
The prices of lamb chops, necks and shanks have also gone up compared to the earlier price reduction after the commission took the costing of the retailers into account.
There are also extra mark-up margins for the corner-shops and outlets in the rural areas and the outer islands.
However Commerce Minister, Aiyaz Sayed-Khaiyum said they are still concerned as the retailers did not disclose a number of documents in relation to unit costs to assist in the price determination.
He also alleged that some retailers may be practicing double accounting and making double invoices and maybe even colluding with some customs officials to get what they want.
Doctor Reddy said about 20 percent of the retailers did not submit any data while a significant number of retailers did not provide all the necessary documents for the unit costing.
Story by: Vijay Narayan
Feature
Follow new prices or face spot fines
