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Momodou
Denmark
11735 Posts |
 Posted - 05 Feb 2010 : 20:32:13
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Consumers Raise Concern Over increasing Price Of Sugar
By Abubacarr Saidykhan
05-02-10
Crystal moist sugar is a basic food commodity that is consumed daily in most households in The Gambia. Recently, consumers have been experiencing rapid increases in the price of a cup of sugar, which was D5.00 as late as November 2009. This price, however, was briefly increased to D6.00 per cup of sugar before it came to D6.50. It is now reported that the cup is sold at D7.00 at some places in the Greater Banjul Area and D8.00 in the countryside. This has led consumers to complain that the price of sugar is exorbitant and they are blaming neighbourhood shopkeepers for the increase. It is these concerns that had prompted this reporter to go around to get the views of importers, traders, shopkeepers and consumers on the issue of the successive price increases of sugar.
According to a retailer at the Serekunda market, who wished to be anonymous, he has been selling retail sugar for many years but has stopped now because of the increase on the price of the bag which makes it unprofitable if one continues to sell the cup even at the current price. The trader said the last bag of sugar he bought before he stopped selling the commodity cost him D1130.00 (One thousand one hundred and thirty dalasi). He further explained that you have between 198 to 200 cups in a bag; that if 200 cups are in a bag and which you sell at D6.00 per cup, you will get D1120 and lost D10.
“This is why I have stopped selling sugar. I cannot run my business incurring loses of this nature” he said.
Dino Muhammed, a Mauritanian national who runs a big retail shop near the Serekunda market, told this reporter that he had stopped selling sugar to customers now because of the increased price of the bag. According to Muhammed who use buy a bag of sugar at TAJCO company in Banjul at D1150 and would pay D9.00 for the transportation of each bag. He argued that it would not be good business for him to sell a cup at D6.00; that they can only make a marginal profit if the cup is sold at D6.50 or D7.00. He said the small time shopkeepers cannot afford to go to Banjul to buy only one bag and pay for transportation to Serekunda.
Proceeding to Banjul, this reporter talked with another trader, Mustapha Mahmud, who said they buy their sugar from the importers like Nando, TAJCO and Shyben A. Madi and Sons companies. He said they buy on wholesale from 200 to 300 bags per trip.
He said he recently bought sugar from Shyben A. Madi and Sons company at D1170 per bag excluding transportation, loading and off-loading cost for labourers; that they are selling at D1178,00 per bag to retailers.
In order to get the views of the major importers of sugar, the reporter also visited the offices of Shyben A. Madi and Sons Company where he was told that the person in charge of importation is out of the country and will be back in next week.
At TAJCO, he was told that the overall manager who can talk with him on the issue has traveled and will be back in two weeks time.
Visiting the Nando and Ackar Company, the could not not find anyone to talk to on the issue of the importation of sugar into the country and the reasons for the increases of whole sale prices.
Source: Foroyaa Online
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A clear conscience fears no accusation - proverb from Sierra Leone |
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ylowe
USA
217 Posts |
Posted - 05 Feb 2010 : 23:21:44
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Price control causes shortages and creates black market
Initiating a price control today is like taking us back to the eighties and anyone with an introductory macro economics class can tell you that it causes shortages and creates a black market. Price control in this era is a quick fix and not the solution.
The Gambian economy is a small open economy with floating exchange rates and therefore the value of the dalasi depends on the availability of foreign exchange in the gambia . “Inflation is always and everywhere a monetary phenomenon” instead of your government using monetary policy to fight inflation they want to come with price control.
“ Inflation is the enemy of the poor” Any increase in taxes or tariffs for businesses is going to be passed on to the final Gambian consumers in the form of higher prices and from my understanding government just increased taxes few months ago and what do you expect from businessmen. People are in business to make profits and with too much government intervention businesses are going to move to places where there is less government intervention.
According to the above article someone already stopped selling sugar. We expect to see shortages of basic commodities soon and of course black markets. What is so interesting about the article is the fact that no one at the importers level is willing to talk to the journalist. Thanks to the journalist we were so close to solving the puzzle.
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sab
United Kingdom
912 Posts |
Posted - 06 Feb 2010 : 00:08:19
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I take your point on price controls - but the shortage of sugar has been looming since August 2009 as reported in Allafrica - Google/sugar shortages & see the worldwide problems.
http://www.investmentu.com/IUEL/2009/December/investing-in-the-sugar-shortage.html
Give Your Portfolio a Sugar High
Tony Daltorio, Investment U Research
Wednesday, December 2, 2009
Name the commodity that recently hit a 28-year high.
No, it’s not gold. It’s one that you probably use every day and don’t think twice about it.
Sugar.
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The world would be a poorer place if it was peopled by children whose parents risked nothing in the cause of social justice, for fear of personal loss. (Joe Slovo - African revolutionary) |
Edited by - sab on 06 Feb 2010 09:22:59 |
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