Posted on January 04, 2019

The Ministry of Commerce and Industry announced the decision of the Committee to set the maximum price and profits ratios in the Ministry No. (7) for the year 2018, on the maximum wage for services imposed on locally produced food commodities. The decision comes within the framework of the ministry’s commitment to protect consumer rights, control prices and regulate markets, ensure their functioning and supporting local products. 

Decree No. (7) of 2018 stipulates in its second article that the provisions of the decree shall apply to the fees of services imposed by outlets on local suppliers of locally produced food products such as vegetables, fruit, fish, meat, poultry, egg, dairy products, and baked products.

Article 3 of the resolution states that the maximum fees for services imposed by outlets on local suppliers shall be no more than 10 percent of the actual sales value of domestically produced food products. Article 4 states that the outlets must obtain the prior approval of the committee when the fees for the services mentioned in Article 3 of the resolution are increased. Article 5 states that the maximum payment period for receivables between domestic outlets and suppliers shall not exceed fifteen days from the date of delivery of the monthly statement of account to the outlets, and shall cancel any contrary agreement. 

Article 6 of the resolution states that the sales outlet may not pressure the parties dealing with it, by any means to gain services. In order to obtain service fees or payment periods or impose discriminatory conditions contrary to the provisions of this resolution, nor shall he refuse to deal or set restrictions and obstacles with the local supplier.

The decision introduces a number of obligations on outlets. Among others, Article 7 specifies that the percentage of locally produced products displayed by outlets shall not constitute less than 50 percent of the goods on shelves of the same class. In addition, no fees shall be charged on the entry and registration services for companies supplying locally produced food commodities. Priority shall be given to local produce displayed, which should clearly bear the label “national product”.Article 8 stipulates that relevant authorities shall execute and apply this decision, each within its competency, as of January 1, 2019, and the decision will be published in the Official Gazette.

The Ministry was the first to use the phrase Together to Support National Products when it launched a national product initiative over a year and a half ago, in cooperation with major malls. The initiative played a major role in supporting entrepreneurs and local companies to launch and market their products, and have the opportunity to easily reach consumers. These efforts contributed to the growth and development of their companies through the valuable experience gained.

The percentage of Qatari food production significantly increased during the first year of the blockade, enabling Qatar to achieve a large percentage of self-sufficiency in milk and chilled poultry, which saw production lines, increase significantly. At the same time, the Ministry is committed to continuing all efforts to develop the activity of local companies while achieving a healthy balance between those companies and all other outlets. 

source: The Peninsula