By LK Hewlett
St. Kitts Reporter
The nation awaits word from the government as to whether there will be an increase in the price of flour that is imported into St. Kitts and Nevis.
Cabinet announced earlier this week that they had been ‘discussing the possible increase’ and planned to discuss the issue with stakeholders.
“While a final position has not yet been taken, it is likely that the cost of flour will increase shortly,” said Minister of State for Information, Sen. the Hon. Nigel Carty.
“The Ministry of Consumer Affairs and the Ministry of Finance are engaged in further study, including discussions with local suppliers of the commodity, to arrive at the most favourable cost and it is likely that a decision will be reached in one week’s time.”
Flour is one of the food items listed as part of the basket of goods that is to be price controlled, meaning the government sets the maximum price at which that item can be sold to consumers. Flour is currently being sold at an average price of $1.25.
Earlier this year, a marginal increase of 6 percent was experienced in the price of flour with local flour suppliers citing shrinking global supplies, poor harvest yields and increasing demand from China, Brazil and India as factors creating upward pressure of the world price of the commodity.
Some local bakers have said that any further price hike would have to result in a corresponding increase in the price of bread and other pastry products. One bakery owner told this newspaper that bakers were the ones who got the short end of the stick in these situations.
“I’m glad that this time government has said that they are the ones raising the price of flour. When the price goes up, we feel the squeeze because we can only charge so much for our pastries and then people complain and buse how our products expensive,” the man explained.
Carty did not mention what the proposed increase would be and how soon the increase would be applied.
