Measures being taken to cushion effects of rising food cost                   
– Commerce Minister

Georgetown, GINA, April 21, 2008

Minister of Tourism, Industry and Commerce, Manniram Prashad today met food importers and flour distributors to discuss the rising cost of food and how they can cushion the price increases on consumers.
            Minister Prashad said that he hopes that by speaking directly with the stakeholders he would be able to get their advice on how they can cushion the price increases.
            He noted that some of the factors they need to look at include the  acquisition cost of food items, the role of the ‘middle-men’ and the distributors and how they can work to sensitize and provide information to the public on the food situation.
            “We do not want to control prices… Guyana is an open market, a free enterprise system. We do not want to fix prices, but at the same time as prices go up, the consuming public is feeling the bulk of that increase in cost,” the Minister said.
            He said that the Ministry has to work with the stakeholders to see how they can alleviate some of the price increases.

Minister of Tourism, Industry and Commerce, Manniram Prashad meets with flour distributors

            “I am doing a fact-finding mission here to find out exactly what the situation is; whether it is true that they charge exorbitant prices in the market,” Minister Prashad said.
            The distributors said that they are facing high acquisition cost for flour.
            Hardeo Balram, a flour distributor said that, “We are asking for a level playing field from the flour mill, everybody gets it (the flour) at one price, and we assure the public that it will reach them at a cheaper price than they are getting now.”
            The distributors noted that the ‘middle-men’ are making more profits and they are unable to compete with them.
            “Before they (middle-men) uplift a bag of flour they are making hundreds of dollars, and we the distributors, who have to carry it to the stores are only making a hundred dollar,” Dhanuk Dhari, a distributor, said.
            The Minister noted that the goal is to ensure that the effects of the rising cost of food prices are cushioned so that the consuming public is not drastically affected.
            At present Ministers and officials of the Government have been travelling around the country to meet residents in various communities, to listen to their concerns and suggestions as to how best they can tackle the high rise in food cost.

 

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