‘Mullet Fish’ price hike queried despite bounty

01/12/2025

KUWAIT CITY, Dec 1: With the conclusion of the fishing season for the local fish mullets known as “Meid” in Kuwait Bay, controversial developments have emerged regarding market activity and prices, particularly following the massive influx of 90,000 tons of locally caught Meid fish during the two-month fishing period from October 3 to November 30. Hamoud Al-Hamdi, supervisor of Shift A at the Sharq Fish Market, explained that approximately 2 million tons of local and imported fish and shrimp were supplied during this period.

This included 555,000 tons of local fish, 250,000 tons of local shrimp, 850,000 tons of imported fish, and 262,000 tons of imported shrimp. Despite the unprecedented abundance of mullet fish in the markets, with daily catches ranging from 400 to 1,000 baskets, prices increased significantly. On peak fishing days, catches reached 1,000 baskets daily, with the highest price per basket reaching KD 146.

This pricing behavior contradicts natural market rules and raises questions about the pricing and auction mechanisms. Al-Hamdi predicted a slight increase in the price of mullet after the fishing season ends, indicating that mullet is not in season for winter consumption, as its availability decreases in colder waters, and demand shifts more toward its use as fishing bait rather than for food. He stressed that any price change is expected to be limited, not sharp or excessive. Al-Hamdi emphasized that the 2025 mullet fishing season was less a test of marine production and more a test of market transparency. He pointed out that the discrepancy between the large supply figures and the price fluctuations indicates that the problem lies not with the sea but with the auction system.

Al-Hamdi questioned whether Kuwait has reached a critical point in adopting mandatory electronic payments within fish auctions to ensure a fair, organized market free from price distortions. Al-Hamdi explained that the main reason behind the high price of mullet lies in the auction system, particularly credit sales, which allow stalls, restaurants, and companies to purchase large quantities and defer immediate payment. This practice injects artificial liquidity into the auction, driving price increases unrelated to actual purchasing power, causing prices to deviate from consumer logic, creating unjustified market fluctuations, and obscuring the true value of the commodity.

Radical solutions to the pricing problem include, in addition to prohibiting credit sales, a complete shift to digital payments using K-Net. Al-Hamdi highlighted the advantages of this approach, including transparent sales, the elimination of inflated and unrealistic prices, real-time electronic documentation, auction regulation, reshaping buyer behavior, and setting prices based solely on actual purchasing power.

By Marwa Al-Bahrawi Al-Seyassah/Arab Times Staff