Fiji retailers ripping off consumers on basic food prices
Updated
Fiji's Consumer Council has called for a complete revamp of the country's pricing system. The Council regularly checks the prices of Fiji's food products and says people are being ripped off under the current system. Fiji's Prices and Incomes Board sets maximum prices for basic products like bread, rice and tinned food, but the council says it found many retailers charging more than they should be.
Presenter: Barbara Heggen
Speaker: Premila Kumar, Chief Executive Officer of the Consumer Council
KUMAR: We have been receiving complaints from the consumers that their traders were charging more than what the regulated prices. And we went around checking the price of the products and that's what we found that their shops that are selling products at much higher prices.
HEGGEN: Well don't you already have a pricing system though?
KUMAR: We do have a pricing system and it comes under another organisation and there are certain products where the price is controlled. And what we found was that these items had a higher price than what is the stated price, and we just didn't understand why this is happening because as we know the prices of food products is going up and it is definitely a concern for consumers, and it has created a hype in Fiji and it seems that there are traders who are taking advantage of the situation.
HEGGEN: So you were saying that the prices and incomes board, which is the organisation which is meant to establish prices that they're not doing their job?
KUMAR: Yeah what we're saying is that they need to be out there conducting surveys of the shops and find out for themselves what is happening on the ground. We are also saying that there has to be a better system, the system is not working.
HEGGEN: So essentially what's the difference between the system that currently exists and what you're proposing?
KUMAR: We're proposing is if you state the maximum retail price on the product which is then bought by PIB then as a consumer I know what is the maximum price that I have to pay. And if say for example if the shopkeeper is trying to give me a discount then I already know what is the maximum price. But in a situation like this where prices are controlled and consumers don't know the real price of that product, then it becomes really hard.
HEGGEN: How can consumers be informed of what the correct prices are?
KUMAR: If there is a press release by PIB, if they can put out the prices of products, it's in a weekly manner in one of the newspapers I think it can work, or just give it to the consumer council and we'll advertise that.
HEGGEN: And did you confront any of the shop owners, the retailers themselves when you came across one that was selling products at a higher than recommended price?
KUMAR: Yes the normal behaviour of the trader here because the ?? population is much smaller and when you talk about competition it can really not work in a smaller population. So then they'll simply say well that's the price if you want it take it, otherwise leave.
HEGGEN: And is there any penalty that can be imposed on shopkeepers at the moment?
KUMAR: When you talk about penalties and so forth it's not clearly stated how much should they be fined. The process is so long-winded they have to take them to court and then the court will fine them. And only the fines are 100, 200, 300 dollars.
HEGGEN: So you're saying it should be easier to fine them and the fines should be steeper?
KUMAR: Yeah, if it's a higher fine then it becomes a deterrent.
