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.
His response comes on the back of the Ghana Union of Traders calling for the reduction of goods and services after the cedi has started to appreciate against major currencies.
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 Accra based Starr FM
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”.
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