The Department of State for Trade, Industry and Employment has warned rice dealers involve in the unhealthy market practice of conditioning retailers to buy rice alongside other goods to desist from it with immediate effect.

In a dispatch sent to the Daily Observer, the state department stressed that such a practice is unlawful and contravenes the provisions of the Competition Act, which came into force on 1 January, this year.

Below is the full text of the dispatch:
It has come to the attention of the Department of State for Trade, Industry and Employment that some importers and wholesalers are involved in the practice of tying or linking the sale of rice to retailers to the purchase of other goods.  

In other words, retailers who refuse to accept these other goods are denied the opportunity of buying rice from these wholesalers. Also, other wholesalers are linking the purchase of one variety of rice, for example 5% broken, to the purchase of another variety, say 25% broken.  Such practices contribute to high retail prices as retailers who find themselves with goods that they cannot sell end up applying a margin of the price on rice.

The Department of State for Trade, Industry and Employment wishes to make it very clear to those involved and the general business community that such a practice is not only anti-competitive and unhealthy for the economy, but also illegal and violates the provisions of the Competition Act 2007, which came into force on January 1, 2008. We therefore call on all those involved in such practices to desist with immediate effect, or face the full force of the law.

As the Department of State for Trade, Industry and Employment continues to work with and support all those genuine businesses, it will not tolerate any abusive practices by unscrupulous persons.

The cooperation of the business community and the general public is highly solicited in making The Gambia business environment more conducive.