26 September 2007
Accra — Call on gov't to reduce tax on the commodity Members of the Tema branch of the Bread Bakers Association of Ghana have threatened to embark on a demonstration to drum home their displeasure over the price increase of flour if the trend remains as it is.
According to them, the commodity in the last two months has seen two increases, forcing them to reduce the size of the bread they sell to their customers, and that is affecting their businesses.
Speaking to The Chronicle in an interview last week Wednesday in Tema, the president of the Association, Madam Jane Brew, said the recent increase in the price of the commodity, which is the major material bakers across the country use in the preparation of bread, has negatively affected their business and appealed to the government to look at it again.
"We want to appeal to the government to come to the aid of bakers in the country by subsidising the cost of flour, or cut down the cost of shipment and taxes to enable us maintain our jobs, else we would be forced to either hit the streets to demonstrate against the high cost of the commodity or close down our businesses all together," she disclosed.
Last week, Ghana Agro-Food Company Limited (GAFCO), disclosed in a press release here in Tema an increase in the price of its floor products by ¢42,000.00.
According to the Public Affairs Officer of the company, Adwoa Mensima Sey, the increase became necessary due to a 35% increase in wheat prices internationally over the last few months largely due to the demand for products like wheat and maize for the production of bio-diesel fuel.
"GAFCO, being a socially responsible organisation, deems it best to pre-empt Ghanaian consumers about this development and wishes to assure them that we will use our best efforts to ensure that the prices of our products remain competitive," she noted.
Adwoa further stated that there was the anticipation of further price increases should the current trend continue.
The Public Affairs Officer continued: "Moreover, the increase in oil prices on the world market has also resulted in the increase of cost of freight.
"Against this background, it is not possible to maintain the present price of flour at ¢333,000.00 (GH¢33.3) per 50kg. Prices will, therefore, go up by ¢42,000.00 (GH¢4.20) per the 50kg bag by the end of the week," Adwoa explained.
Explaining her point, Madam Jane said the rate at which bread was being bought in the Municipality has gone down drastically since the increase in the price of floor because both sellers and buyers of bread continue to complain about the reduced size of the commodity.
She explained that before the increment, bakers were able to sell between three and six bags of flour a day. However, many of the bakers have been forced to close down their businesses as a result of the increment which has reduced sales.
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