April 22, 2008

Manniram Prashad meets with businessmen on flour prices

Posted by : Priya Nauth
Filed under : News

MINISTER of Tourism, Industry and Commerce, Mr. Manniram Prashad met yesterday with retailers to discuss the issue of flour prices and also problems facing the dealers.

Speaking at his office, Prashad explained that there are concerns that the middle men who handle the flour put high mark ups on the item, hence by the time it reaches the consumers the cost goes up significantly.

I am trying to find out exactly what the situation is and if it is true they charge exorbitant prices on the market,” he noted.

…these retailers play a very important role,” he emphasised.

The minister further said that the businessmen are among the top retailers in the market and they face some problems with respect to the acquisition cost and the retail price.

Prashad said his Ministry is working out ways to ensure the price of flour is reduced by involving all the stakeholders for the benefit of the consuming public.

He noted that Guyana is a net exporter of food and as such the country is not affected as much as the neighbouring countries.

?ut I can’t tell the public that because they are concerned about prices of food and we have got to address these issues. And that is why the President has asked the ministers to fan out across the country and met people to discuss increase food production,” he said.

We are asking for a level playing field from the National Milling Company

(NAMILCO)…they brought in some distributors who don’t normally used to deal with flour and they are getting flour at a far cheaper price than us”, Hardeo Balram of Balram and Sons located at East La Penitence, Georgetown said.

Balram explained that, “Actually we can afford to buy flour from them cheaper than the flour mill …if you can give everyone a level playing field we will be able to sell flour cheaper to the consuming public.”

…there are certain friends and family that were brought into the operation of distributing (we have to call them middle men) because they are getting the flour cheaper than us and we have been dealing with the flour mill for many, many years now”.

He urged for a level playing field from the flour mill where everyone gets flour for the same price.

… and we assure the public that it will reach them at a cheaper price than it is presently,” he guaranteed.

Another dealer, Dhanuk Dhari who operates in Kitty Market, explained that these distributors are getting a bag of self-rising flour $700 cheaper than the retailers

Jagdesh Rajkumar, a wholesaler at Bourda Market pointed out that if he buys a bag of thunderbolt flour and roti-mix flour from NAMILCO it will cost $6,000 and $10, 550 respectively as compared to the middle men at $5,980 and $10, 300 respectively.

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