Major retailers have confirmed they have been notified by several suppliers about the increase in prices. Top market suppliers such as the Emirates Modern Poultry Company (EMPC) which sells Al Rawdah chicken, and Ras Al Khaimah Poultry and Feeding Company (RPFC) which sells Ras Al Khaimah Fresh Chicken, recently sent notices to retailers informing them of the new prices.

The price of one kilo of Al Rawdah and Ras Al Khaimah chicken will go up from 16 dirham (AED) to AED17.

The maximum price set by the Ministry of Economy for one kilo of fresh chicken is AED16, which will force supermarkets to either sell below the higher price or look for other means to cover expenses, such as repacking and selling in parts, reports Gulf News.

"We have received notification from a few suppliers. So far we have not increased the price," said a spokesperson for the Lulu Hypermarket, a prominent retail chain.

"We are in the process of clarifying with the Ministry of Economy if approval has been granted for the proposed hike. Our prices will only change if the hike has been sanctioned."

Some suppliers have even threatened retailers with cutting off supplies if the price is not increased.

"The situation is critical. It could lead to a shortage in the market if the authorities do not intervene, especially because chicken is one of the fastest moving food products during Ramadan," said the purchase manager of a shop.

While agreeing that new prices have been announced, suppliers claim the increase is due to the soaring increase in overheads.

"Due to excessive price increases, we are forced to increase the price of our products from August 20," the RPFC wrote in a note to retailers, requesting cooperation.

"AED17 is the price for those who make use of credit, otherwise the price is AED16.

"The cost of feed has gone up drastically over the past six months," said an official at the RPFC.

Industry sources, however, revealed that this move nearly coinciding with Ramadan is merely to cash in on the season of peak demand.