Kuwait Mandates 75% Local Produce in Cooperative Societies
In a significant move to bolster food security and support local agriculture, Kuwait’s Minister of Social Affairs, Family, and Childhood Affairs, Dr. Amthal Al-Huwailah, has issued a ministerial decision requiring cooperative societies to source at least 75% of their agricultural products from local farmers. This initiative aligns with the government’s broader strategy to enhance domestic production and support Kuwaiti farmer
Key Provisions of the Decision
The decision outlines several measures to ensure effective implementation:
- Direct Procurement: Cooperative societies must purchase a minimum of 75% of their agricultural products directly from local sources by participating in daily auctions at approved marketing outlets. Transactions are to be conducted using computerized invoices to ensure transparency and efficiency.
- Dedicated Representation: Each cooperative society is required to appoint a staff representative to attend these daily auctions. Priority for these roles is given to Kuwaiti nationals, promoting local employment within the agricultural sector.
- Prominent Display of Local Produce: Cooperative societies must allocate 30% of their central market space to showcase local agricultural products, thereby increasing visibility and accessibility for consumers.
- Transparent Pricing: Clear price lists for all local agricultural products must be displayed, fostering transparency between consumers and farmers. A profit margin cap of 20% is imposed on local produce to ensure fair pricing.
- Support for Potential Losses: Cooperative societies are permitted to absorb up to 5% of the total value of daily local produce purchases within a week to cover potential losses, supporting the sustainability of local farming operations.
Enforcement and Compliance
To ensure adherence to these new regulations, the administrative supervisors of each cooperative society are tasked with reviewing daily purchase invoices. They are required to submit monthly reports detailing any violations and the measures taken to address non-compliance to the Ministry of Social Affairs.
A joint committee comprising representatives from the Ministry of Social Affairs, the Ministry of Commerce and Industry, the Public Authority for Agriculture and Fish Resources, and the Union of Cooperative Societies will monitor the implementation of this decision. This committee is responsible for submitting monthly compliance reports and assessing the decision’s impact, offering recommendations for any necessary adjustments.
Implications for Food Security and the Local Economy
This decision is part of Kuwait’s ongoing efforts to ensure sustainability in the agricultural sector, stimulate the local economy, and enhance the contribution of national products to cooperative markets. By mandating a higher percentage of local produce in cooperative societies, the government aims to achieve greater self-sufficiency and food security.
The emphasis on local sourcing is expected to provide a significant boost to Kuwaiti farmers, offering them a stable market for their produce and encouraging increased agricultural production. Consumers will benefit from access to fresh, locally grown products, while the economy stands to gain from the reduced reliance on imported goods.
Background and Context
This initiative builds upon previous efforts to promote local agricultural products within Kuwait. In August 2022, a ministerial decision was issued obliging cooperative societies to purchase local agricultural products by participating in daily auctions at approved marketing outlets, with a requirement to source at least 75% of their needs from local production.
The current decision reinforces and expands upon these earlier measures, reflecting the government’s continued commitment to supporting local agriculture and ensuring food security for the nation.
Conclusion
Kuwait’s mandate for cooperative societies to source 75% of their agricultural products locally represents a significant step toward strengthening the country’s agricultural sector and ensuring food security. By supporting local farmers and promoting the consumption of homegrown produce, the government is fostering a more self-reliant and sustainable food system that benefits producers and consumers alike.
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