THE National Milling Company of Guyana Inc. (NAMILCO) is asking for an increase in the price of flour, and following a meeting scheduled with President Bharrat Jagdeo and bakers today, an announcement will be made.
Speaking with reporters yesterday at his office, at Eccles, East Bank Demerara, Managing Director of NAMILCO, Bert Sukhai, disclosed that he recently requested government to consider an increase of 15 percent across the board.
Sukhai said President Jagdeo last Thursday made known his desire to first meet with bakers in order to determine the impact of flour and other increases on the price of bread.
According to a press statement that Sukhai circulated to the media yesterday, the increase is being pursued based on the movement of wheat, which has increased by over 30 percent since last October.
“We want to assure consumers that increases are taking place worldwide and we, at all levels, must try to keep increases of related flour products at a minimum,” it said.
“Wheat cannot be grown in Guyana so all the wheat needed to produce flour is imported. We have in the past tried to keep prices steady by buying a few shipments at a time at locked-in prices. However, prices have been rising since 2010 so at some point it had to impact in Guyana.
“In 2008 wheat prices spiked and the government was kind enough to intervene to keep flour prices affordable. In November 2008, when wheat prices declined we were able to reduce prices to its original levels. Wheat prices then remained relatively stable for over two years with flour prices remaining unchanged right up to October of last year, when a small increase of $4.40 per pound was added.
“We, in Guyana are once again faced with the unsavory thought of increased prices. The Jamaican Flour Mills have warned that customers could be forced to absorb up to 50 percent of the impending increase in the price of flour. All over the world prices have been increasing and in some countries creating food shortages and economic issues. However, we are fortunate, because of our agricultural based economy and through the wisdom of government to be able to cushion these effects of rising prices.
“Many countries in the Caribbean look towards Guyana for food security,” the release stated.
A few weeks ago, the Caribbean Millers Association, a grouping consisting of flour millers and others from the region, issued a press release to address the rising prices of wheat and its impact in the Caribbean.
“The Caribbean mills, in an effort to remain viable businesses and ensure the highest quality products and services, must increase prices for flour and flour related products immediately,” it cautioned.