Says further reduction will come before year end

General Manager of the National Milling Company (NAMILCO) Bert Sukhai has told Stabroek Business that contrary to the impression created by the recent spat between the company and government over flour prices there has, in fact, been no increase in the price of the commodity since May this year.

General Manager of NAMILCO Bert Sukhai

Speaking with the Stabroek Business earlier this week Sukhai recounted some of the critical developments in the chronology of events when the company raised the price of a 45 kg bag of flour by $1,500.

Sukhai said that subsequent to that price increase the government made what he described as “a timely intervention” by absorbing the full amount of the price increase through a subsidy from which both bakers and some ordinary consumers benefited.

According to Sukhai prior to the May increase the company had given a commitment to government that flour prices would be reduced by the end of August based on the anticipated importation of cheaper wheat supplies around that time.  Sukhai said that the shipment failed to materialize within the anticipated time frame and that while the company was forced to import a smaller quantity of more expensive wheat from the United States, it, nonetheless, took a decision, first, to reduce the price of flour by $200 per 45 kg bag and, subsequently, to offer bakers a further $300 price reduction. According to Sukhai NAMILCO granted these price decreases “in good faith” and despite the fact that the shipment of cheaper wheat which it anticipated towards the end of August is not now due to arrive here until mid-October.

According to Sukhai with the removal of the subsidy implemented by government bakers are now paying an increase of around $10 per pound per flour while ordinary consumers have had to pay no increase  in the price of packaged flour since May this year. He said that this year local consumers were fortunate to have benefited from “the cheapest flour in the Caribbean and even further afield” and that towards the end of this year local consumers were likely to benefit from a further reduction in flour prices.

Government and NAMILCO have had a sharp public disagreement over flour prices in the wake of recent increases in the price of bread and the company has reacted strongly to charges of price gouging. During his interview with Stabroek Business Sukhai said that the company disagreed with charges made by Cabinet Secretary Dr. Roger Luncheon that it was exploiting a monopoly position pointing out that the removal of licensing requirements on flour importation  meant that, “in effect, there is no monopoly.”

Sukhai said that while he was concerned that various unfounded claims could hurt the image of the company he was determined to engage the government in an atmosphere of cordiality in an effort to settle the issue. Sukhai is due to meet with President Bharrat Jagdeo shortly on the issue.