FABAG announces drop in food, beverage prices – Calls for national price reduction campaign
The Food and Beverage Association of Ghana (FABAG) has announced that prices of key commodities within the sector have begun falling, with further reductions expected in the coming weeks.
The association has indicated, however, that price reduction would be gradual, given that the current stock of goods in the market might have been acquired at the previous higher exchange rates.
The Executive Secretary of FABAG, John Awuni, told the Daily Graphic that it would take some time for the improved cedi to have an impact on local prices.
He stressed that the expected impact would be more pronounced in the long term when the cedi’s rise against the major currencies was sustained across a longer period.
The cedi has moved from over GH¢16 to $1 at the start of the year to less than GH¢13.2 to $1 now, with market watchers predicting an even better outlook for the currency in the coming days.
Mr Awuni explained that the goods on the local market currently were acquired at a lower value of the cedi against the dollar and other foreign currencies, and that prices would not necessarily reflect the better strength of the cedi currently.
“The Ghanaian market is a credit market. If the old stocks of goods remain, it will take some time to have an impact on prices,” Mr Awuni explained.
“We expect a reduction in prices, but it won’t be overnight. It will be gradual,” he added.
Speaking at a stakeholder engagement with the Minister of Finance, Dr Cassiel Ato Forson, last Friday, the FABAG Executive Secretary confirmed that prices of essential products, such as sugar and rice, had started reducing.
Reduction in prices
“We have reduced sugar prices by about seven per cent as of today, and rice prices have corrected by about 10 per cent. As importers, we are aggressively pushing prices down, but unfortunately, others in the value chain are not responding,” Mr Awuni stated.
He emphasised the need for collective action to ensure that the reductions translated into meaningful relief for the public.
“We believe this must be a national effort. We are calling for a national campaign for price reductions. If others also respond, it will reflect in the lives of ordinary Ghanaians,” he urged.
Appeal
The Minister of Finance, at the meeting, commended FABAG for its leadership, and appealed to other trade associations, including the Ghana Union of Traders’ Association (GUTA), to follow FABAG’s example by adjusting prices downward.
“We are seeing improvements in the cedi, and inflation is slowing. It’s time for businesses to reflect this in their pricing.
“I appeal to GUTA and others to support this effort so Ghanaians can truly feel the recovery,” the minister added.