Sunday, July 5, 2020

The Bakers, Flour Producers, Middlepersons And Consumers

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Bread is a core driver of the informal sector in The Gambia. Food is an indispensable commodity. Each person must eat every day to be able to survive. Many people in the urban area depend on food vendors to have their breakfast everyday.

Hence tens of thousands of people are served by thousands of vendors who rely on bread to add the other condiments in order for their customers to have their daily meals. Bread helps to sell butter, mayonnaise, eggs, beans and other additional foodstuff that ensure the multiplying effect of earnings by different producers. Without bread there will be stagnation in the operation of many businesses. Those who are responsible for this sector need to sit down and discuss how to avoid the current disagreement on prices.

What is responsible for the current price increase? Foroyaa has asked the flour producers and they claim that their price has not increased. The bakers also claim that they have 50b profit per bread. The middlepersons claim that they have been receiving the same as before. The government therefore needs to tell the public what is responsible for the price hike. This confirms that even in the absence of price control because of the commitment to a liberalized economy, there should be a price policy that should ensure that no commodity shall experience price increase unless the importers and distributors engage in consultation with government authorities to explain why a price increase is just, fair and necessary. Unless such a policy is adopted the consumers will be at the mercy of speculators.

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