The National Milling Com-pany of Guyana (NAMILCO) has proposed a 15% increase in the price of flour, following the rising prices of wheat on the world market.
In a statement yesterday, NAMILCO Managing Director Bert Sukhai that at a meeting with President Bharrat Jagdeo at the Office of the President on Thursday, the impact the increase will have on consumers was examined.
Further, he explained that Jagdeo is also to meet bakers to determine the impact of flour and other increases on the price of bread. “We are hoping after that meeting, to make an announcement on the level of increase in the price of flour,” Sukhai said.
According to Sukhai, the proposed increase is based on the movement of wheat, which has increased by over 30% since last October. “We know flour is dear to Guyanese and telling us to use substitutes would not be acceptable,” he said. “So, we are in discussion with the government to mutually agree on the extent of the increase.”
He added that NAMILCO has tried to keep prices steady by buying a few shipments at a time at locked prices. However, he said prices have been rising since 2010 and inevitably had to impact Guyana.
In 2008, he noted, government intervened when wheat prices spiked to keep flour prices affordable. Later that year, when prices declined, they were able to reduce prices to the original levels. He said wheat prices remained “relatively stable” for over two years, with flour prices remaining unchanged up to October last year, when a small increase of $4.40 was added.
Sukhai pointed out that increases are taking place worldwide and there must be an effort at all levels to keep prices to a minimum.
He said the Jamaica Flour Mills have warned that customers could be forced to absorb up to 50% of the impending increase in the price of flour, while NFM in Trinidad is also in discussions about increasing prices.
The Caribbean Millers’ Association (CMA), a grouping consisting of flour millers from the region, announced that due to challenges experienced within the industry last year, the price for flour and flour-related products would be increased.
CMA said that it is aware of the effects the increase will have on consumers and assured that all increases will be kept to a minimum.
It further said that any future decreases will be passed to consumers.
Noting the CMA statement, Sukhai explained that before any increase the millers engage their respective governments and all stakeholders to lessen the impact on consumers. Given the worldwide increases in food prices as well as related food shortages, he described Guyana as fortunate because of its agriculture-based economy as well as the wisdom of the government to cushion the effect of rising prices. In addition, he said many countries in the Caribbean look towards Guyana for food security.
