Kuwait cracks down on 12 egg companies for supply shortfall

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KUWAIT CITY, Jan 13: In a recent development, the Ministry of Commerce and Industry has taken strict measures against 12 egg production companies. The officials allege that these companies failed to supply cooperative societies with the customary quantities of eggs, resulting in a supply deficit nearing 50% compared to the demand. The sources indicate that the implicated companies are slated to face legal repercussions, as they are set to be referred to the prosecution on charges of both refusal to sell and inadequate supply to cooperative societies.

According to the violation notices, the Ministry’s actions are based on inspection tours and complaints filed by cooperative societies. These complaints suggest that despite the availability of eggs in parallel and central markets, the societies are experiencing a shortage, with no eggs being sold. The violation notices cite a significant price difference, as a plate of eggs in cooperative societies does not exceed 1.21 dinars, while prices in parallel markets reach 1.5 dinars. This discrepancy is evidence that the egg companies are violating Law 76/2020 by refusing to sell.

The egg companies, however, argue that their current production capacity is insufficient to meet demand. Conversely, officials from cooperative societies attribute the deficit to increased export levels. The deficit remains unaddressed despite Minister Muhammad Al-Aiban’s decision to halt egg exports abroad for nine months annually, ending in late February. Trade and cooperative officials interpret this as an indication that egg companies prioritize the parallel markets, where they can sell at a higher price rate, approximately 25% more than in cooperative societies. This interpretation is rooted in the ministerial decision governing cooperatives.

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