City grocery outlets and vendors at the municipal markets say it is difficult to predict what holiday sales will be like and some are hopeful even though sales remain low.
The implementation of the Value Added Tax (VAT) has seen items that previously attracted no taxes being taxed and increases in the prices of imported items such as milk and oil (which do not attract VAT). These together with cheese, corn, soybean and wheat have significantly increased the cost of the consumer’s basket of basic items and inflation now stands at 13.3%. Locally produced rice, sugar, peas and fats like margarine and other shortenings have also seen price increases.
The retail prices of basic food items as compared to last year show significant increases. For this year one bag of brown rice has moved from $3600-plus to $4400 and white rice from between $2700 to $3000 to $4000 per bag; cheese from $6000-plus last year per slab to as high as $9700 and $10,000; sugar from $3400 last year per bag to $4100 per bag; a bag of flour from $4000-plus last year to $6000-plus (flour previously attracted 10% c-tax now but now attracts 16% VAT); a 11.4 kg box of margarine moved from $3700 last year to $3900; a five-gallon pail of oil retailed last year for $3000 to $4000 and is now $6400-plus.
One wholesale confectionary and grocery vendor at Stabroek Market who asked not to be named complained that it is already November month end and “sales is really bad.”
He complained as well that decreased business also contributes to the shelf life of items expiring. The wholesaler said that for the past couple of years holiday sales have decreased and he believes that with the implementation of VAT it is going to be “tougher,” adding, “whatever (sales) comes, I have to say thank God for it.”
The man said that the recent seizures of liquor by the Customs authority from unlicensed Stabroek market vendors and pull-cart operators have placed additional pressures on his business, since the small vendors peddle the items from the wholesalers.
Stabroek Market egg vendor Jerry also told this newspaper that he could not say what the holiday sales will be like this month but with caution said “we have to wait (and see).” Jerry was retailing a tray of eggs for $450-$600 and warned that prices will fluctuate in December once feed prices increase. At Stabroek Market eggs were retailed for $600 per tray and at four for $100. Egg prices in the past have reached as high as $1000 per tray during the month of December since demand is normally robust.
Another grocery stall owner at Stabroek market who asked not to be named optimistically said vendors are expecting that sales will be good but, “right now it is very slow.” This newspaper was told by other vendors at Stabroek that a number of shoppers wait until the last two weeks or the last week before Christmas to do their grocery shopping.
Over at Bourda Market, an official from Guynaz Green Grocers at 248 Bourda and North Road told Stabroek News in an interview, “it is difficult
