-as gov’t seeks to make the staple affordable
The government has, with immediate effect, removed all administrative restrictions on the importation of flour with the hope of bringing down the price on the local market.
Speaking with reporters prior to the convening of yesterday’s sitting of the National Assembly, Minister of Commerce Manniram Prashad said the price of wheat on the world market had risen significantly and even though the government had zero rated flour (removed the 16% VAT) in this year’s budget the benefit had not filtered down to consumers.
The removal of administrative restrictions means that no licence would be required from the Ministry of Commerce to import flour and wheat, he said, adding that the measure was taken by the government after careful analysis of the situation.
However, he said, importers would still be required to have their products certified by the Government Food and Drug Department.
Prashad noted that the National Milling Company (Namilco) had raised the price of its product, despite the zero rating. He said Namilco complained that it had to retrench workers because of the cost of production in addition to the price increase of wheat.
Last year July, the government opened up the market granting import licences to a few individuals and businesses, forcing Namilco to drop its price.
Prashad said the new measure being instituted would be monitored and analysed to determine future actions and the situation would remain in effect for “as long as we see fit.”
Asked whether the government would be losing revenue by not granting licences for importation, Prashad said even if it lost revenue it was a sacrifice the government was prepared to make in the interest of the welfare of citizens.
