FCCC Proposes Ghee Price Regulation Before Pursuing Legal Action

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.

Recent reports indicate that some major supermarkets along the Suva-Nausori corridor have raised the price of a 750ml bottle of ghee from an average of $24.02 in August to $31.24 by September, raising concerns among consumers and regulators alike.

FCCC Chief Executive Officer, Mr Joel Abraham, stated that ghee will be the first product included in the grocery sector market study targeted for price regulation.

He noted that retail prices have sharply risen from July to September 2024, prompting the FCCC to investigate the reasons behind these increases.

The assessment conducted by the FCCC revealed a staggering combined markup of approximately 53 percent from factory to retail, leading to calls for immediate action.

As a short-term measure, the FCCC is urging the government to enforce price controls on ghee to protect consumers.

Abraham emphasized the commission’s commitment to ensuring that retailers follow the rules.

To help with this, the FCCC plans to develop and implement a strong monitoring system.

He reassures consumers that any price changes at the wholesale level would be accurately reflected at retail stores.

Abraham acknowledged the efforts of some retailers who have recently lowered ghee prices, with some selling at cost or even below it, maintaining a markup of only about 2 percent.

The FCCC is waiting for the government's approval to proceed with its recommendations, as it seeks to stabilize ghee prices and protect consumers.