KUWAIT CITY, Jan 29: In a significant move to bolster the national economy and promote local industries, the Ministry of Social Affairs issued an administrative circular aimed at easing access and enhancing the visibility of national products within cooperative markets. Dr. Sayed Issa, acting Assistant Undersecretary for Financial and Administrative Affairs and Cooperative Affairs, and Director General of the Department of Planning and Administrative Development, issued the circular under the direct instructions of Minister of Social, Family, and Childhood Affairs Dr. Amthal Al-Huwailah.
The new directive exempts national products from all requirements and restrictions that cooperatives typically impose on similar imported goods. It mandates the removal of all obstacles to their distribution and promotion, requiring cooperatives to allocate suitable display spaces and provide clear advertising for local goods. It introduces stricter payment terms for cooperative societies.
They are now required to pay suppliers for fast-moving consumer goods and national products within 15 days of delivery. Payment for other goods is set at a maximum of 45 days. To ensure efficient inventory management, any slow-moving goods – those with a turnover exceeding 90 days – must be returned to the suppliers. The circular emphasizes fair practice, priority for local products in procurement, display, marketing and shelf placement.
It prohibits practices harmful to national companies, such as imposing irregular conditions, unjustified product returns, demanding mandatory free goods or forcing dealings with specific financial entities. It demands oversight and auditing of cooperative employees whose actions may hinder the marketing of national products or involve mistreatment of national companies. To ensure proper accountability, all free goods received by cooperatives must be thoroughly recorded and documented, with a warning that any undocumented free goods will lead to legal action against those responsible. The circular also strictly prohibits the use of cooperative societies as warehouses for any products.
By Fares Ghaleb Al-Seyassah/Arab Times Staff
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