The Retailers Association of Seychelles (Ras) has condemned the actions of certain retailers to increase prices on certain essential commodities imported by the Seychelles Trading Company and which they are reselling to the public.

These commodities carry a recommended retail price (RRP) tag which includes a mark-up for the retailers.

The Ministry of Finance, Economic Planning and Trade had over the weekend expressed its dissatisfaction and condemned such practices by certain retailers. The ministry had said that STC has as its primary role to anchor the price of the essential commodities, which it imports, to ensure that the cost of living is affordable and the malpractice by certain retailers is defeating the purpose.

Reacting to the ministry’s statement, the executive secretary of Ras, Louisianne Jacques, clarified that through an investigation, only two retailers – one in the north and the other in the south of Mahé – had pushed up prices on sugar and flour only and nothing else.

She said the association took the matter seriously and it was able to resolve the issue within one hour since it first heard about it on Saturday.

“Given the fact that we, retailers, have a more or less bad reputation with customers out there, we summoned the retailers in question and told them what they were doing was wrong and they could not continue with this practice as they were tarnishing the image of others in the business,” Ms Jacques said, noting that many of the other retailers were also not happy with the actions of their two fellow retailers.

Ms Jacques called on consumers not to generalise such incidents as it affects other retailers doing their job conscientiously.

She said people should find out how many shops are flouting STC’s retailed mark-up price and to be fair in their judgment before accusing the whole retailing community of malpractice.

She said the association will seek to name and shame shops if they are repeatedly involved in price hiking or other malpractices in future.

She called on consumers to call 2717167 or 4266739 to report any retailer selling STC’s basic commodities above the recommended retail price.

Meanwhile, in an interview given to the Seychelles Broadcasting Corporation (SBC), the chairman of the association, Kannusamy Naidu, said there was no need for the Ministry of Finance, Economic Planning and Trade to come out with the press release given the fact that the issue was resolved quickly the same day.

He noted that the retailers involved had claimed that they had increased the price of flour from R9.95 to R12 and that of sugar from R14.65 to R14.75 to cover transport cost as they picked up the items themselves as compared to some who had these items delivered at their doorsteps by STC.

He said the ministry’s communique is damaging to retailers.

The chief executive of the Fair Trading Commission, Francis Lebon, said in a communique that in an open and free market economy, RRP is a price recommended by the supplier and it is a non binding suggestion. He said that businesses can set their own prices.

Source: National Information Services Agency