The shocking and significant increase in the price of chicken and other goods has been found to be the fault of some sellers attempting to benefit from the public’s uncertainty and raise their own profit margins, according to checks by both the Consumer Council of Fiji (CCoF) and the Fijian Competition and Consumer Commission (FCCC).
“The Consumer Council of Fiji commends the Fijian Competition and Consumer Commission for its prompt and decisive action in addressing the issue of excessive price increases of chicken in the wake of the recent Value Added Tax (VAT) hike.”
According to a press release from CCoF, while the VAT increase was implemented at a reasonable 6 percentage points, the council’s analysis found a significant discrepancy between the VAT rise and the subsequent price increases imposed by certain traders.
“While a 6 per cent VAT hike would naturally warrant a marginal increase in retail prices, some unscrupulous traders have taken advantage of the situation, imposing unjustified and excessive price surges on consumers, especially on chicken – a staple protein source for many Fijian households.”
In response to these concerning developments, CCoF chief executive officer Seema Shandil has called for stringent measures to address the issue and protect consumers from price exploitation.
“The warning sounded by FCCC that if businesses continue with price exploitation on chicken, they would consider regulating the prices is welcomed by the council,” Ms Shandil said.
“However, we also need some deterrent in the form of enforcement actions against traders engaging in such practices. We cannot leave consumers’ interest and financial wellbeing at the discretion of businesses that seem to only care about their profit margins.”
Ms Shandil further said while a price reduction could be seen after FCCC’s intervention, some supermarkets had labelled this decrease as a discount; with a validity till the 31st of this month.
“We are calling on traders, particularly supermarkets to justify why there is a price validity date and what will happen to the prices come next month?
“Are they going to resort to price exploitation again? This needs to be immediately answered and addressed.”
The CCoF statement says they recognise the importance of collaborative efforts between regulatory bodies and consumer advocacy organisations to ensure that consumers’ rights are upheld, and the council will work with enforcement bodies to ensure the interest of consumers are protected.
