KUWAIT CITY, July 10: Mishaal Al-Manea, Chairman of the Board of Directors of the Consumer Protection Society, highlighted that increased operating costs have forced restaurants to either raise meal prices or reduce portion sizes. He noted that price increases for basic commodities vary by product and market, with some rising by at least 10 percent. Fahd Al-Arbash added that a decline in global production has caused the price of imported frozen chicken to rise from 600 to 900 fils, while the price of local chicken has reached 1,250 dinars. Restaurant owners are struggling with global price increases and strict regulatory control, reports Al-Rai daily.

Global turmoil, including military operations in the Red Sea, the war in Ukraine, and the escalating Middle East crisis, poses a significant threat to global supply chains, which have been unstable since the COVID-19 crisis and subsequent lock downs. These issues have led to increased commodity prices and global inflation. Kuwait has not been immune to these risks, and experts have noted a rise in food prices during the first half of this year due to increased shipping costs, inflation in producing countries, and the impact of climate change. In an interview with Al-Rai, experts emphasized the direct impact of these increases on citizens and consumers, underscoring the need for measures to alleviate the burden. Such measures include implementing policies to curb price increases, supporting farmers to boost local production, and improving shipping and transportation infrastructure to reduce costs. Additionally, they stressed the importance of directing support to families with limited income.

Al-Manea pointed out the difficulty in accurately determining the number of food commodities whose prices have increased but noted a general rise in prices due to global factors such as increased shipping costs, political crises, and energy price fluctuations. He also mentioned that local macroeconomic policies and currency fluctuations could have indirect effects. The increase in commodity prices ranges from 10 to 30 percent depending on the product, supplier, and production costs.

The rise in prices has increased operating costs for restaurants, leading them to raise meal prices or reduce portion sizes. Al-Manea suggested encouraging citizens to seek less expensive local alternatives and supporting cooperatives and initiatives to provide goods at reasonable prices.

He emphasized the need for the government to regulate support distribution, limit it to low-income families, curb prices, support local farmers, and improve transportation infrastructure to reduce costs.

Fahad Al-Arbash, head of the Union of Restaurants, Cafes, and Food Equipment, reported significant increases in food prices in Kuwait during the first half of this year, with some goods seeing a 30 percent rise. He attributed this to global inflation, increased shipping costs, and export reduction decisions by some countries.

Specific commodities, like frozen chicken, have seen notable increases due to decreased global production, while rice prices have risen due to climate change and cocoa bean prices have surged due to disease and climate change in West Africa and complexities in the futures market. These price increases have burdened restaurant owners, who face strict regulatory control by the Ministry of Commerce and Industry, which prevents them from raising meal prices without approval.

Al-Arbash highlighted that some meal prices have not changed since the 1980s, affecting product quality, and argued that Kuwait’s restaurant prices are the lowest in the Gulf. He suggested that liberalizing meal prices could combat potential fraud in restaurants