A small increase was instituted by the National Milling Company of Guyana (NAMILCO) in the price of packaged flour on Tuesday and the 45 kg bag of flour on Monday.
Last month NAMILCO had said that consumers can expect a significant increase in the price of flour as a result of rising wheat prices overseas.
Countries like Canada, one of the leaders in wheat production, downgraded production levels which resulted in record low (26-year low) global stockpiles and Australia, known as the world’s second largest wheat exporting nation behind the United States, also downgraded its production level by 31% (from 22.5 million tonnes to 15.5 million tonnes) for June, according to a report last month.
However, NAMILCO Managing Director Bert Sukhai told Stabroek News that the prices are being increased in steps and another price increase is expected this year.
He said that the prices for the 45-kg bag, the one-kilogramme pack, two- kilogramme pack, self-rising and roti mix packs had all been hiked, but these increases are yet to be quantified in percentage.
NAMILCO’s VAT inclusive flour price as of last week was $5,450 for the 45-kg bag, with lower prices for large quantities. NAMILCO on July 3 had increased its flour prices to $5,025 from $4,435 per 45-kg bag VAT exclusive, but later lowered prices when the flour market was opened.
At Pearl’s Bakery in Durban Street, Pearl Arthur told Stabroek News on Tuesday that she was yet to purchase flour at the new price. Arthur noted that the bakery utilizes the imported flour from Trinidad and Tobago and is satisfied with the quality and also uses NAMILCO flour. The T&T flour is imported by Mahaicony Rice Ltd at Perth Branch Road, Mahaicony, East Coast.
Pearl’s Bakery has not increased the prices of its breads this year and plait breads are sold at $90, $130 and $150, while sliced breads are sold at $130, $150 and $160.
And Jac’s Bakery and Restaurant owner Stan Smith in Linden after being told about the increase on the 45-kg bag assured that it would not impact the prices of its bread and other products.
NAMILCO remains the only source of flour for Jac’s Bakery. This bakery also increased the price for its breads by $10 from $150.
However, at city Municipal markets a large amount of the breads from major bakeries was being retailed for $200.
The government had hoped that opening the flour market in July would result in lower flour prices and bread prices. But wheat prices have not decreased on the global commodities market, and demand pressures and low wheat production continue to keep prices high.
