The General Secretary of the Food and Beverages Association of Ghana (FBAG), Samuel Aggrey says the call by Ghana Union of Traders Association (GUTA) asking for price reduction of goods is a wrong move.
But the Food and Beverage Association disagrees.
“It’s a wrong call to ask for price reduction because as the Cedi gains its value from where we were we lost about 100% of our currency. It is not possible because if you look at the rate at which it is appreciating, it’s not the same as it was depreciating and therefore the level it got to which businesses also started increasing their prices and all that, we are not there yet. If we see a reduction of about 40% that will warrant a reduction but as it is now prices will remain stable where they are and further appreciation will rather call for some adjustments in price rates,” Mr. Aggrey told Starr News.
According to him, traders are expected to run at a loss should they reduce the prices of goods.
“If you are not careful and you reduce your prices at this time you will still not break even because looking at what has gone into it even at the time that your import has come in and your raw materials have also come in at the expense of 13 or 14 cedis per dollar, then obviously when you check the Cedi now at 12 cedis it’s not possible for you to reduce.
“It will then reflect in your next import where the pricing will be reflected as such and therefore you also make that adjustment. But as it is now, it’s too early to call for a price reduction because if you do that seriously I don’t know how your calculation will be but it will be a wrong call as I should put it”.
In an interview with Naa Dedei Tettey on Starr FM Mr. Obeng said “we reached the apex of about 15.5 and now we have come to around 12.5. So it’s a reasonable difference for us to make amends and that’s what we are doing because we also owe a duty to the consuming populace.
“When the prices went up we appealed to our men also to go up. So it is also natural that when the prices come down we do something to appease the consuming populace. Don’t forget that even from last week some of the prices have started coming down. It’s a natural sequence and that is why we are encouraging the government to even sustain the program. Because if the forex is not stabilized and it goes up then naturally prices will also follow it. Once it’s coming down the natural sequence is that prices will also come down,” he added.