The East Caribbean Group of Companies (ECGC) has requested an increase in the price of flour.
On Friday, Prime Minister Ralph Gonsalves said the request for an increase can be justified and is justifiable.
“In light of the fact that wheat prices have increased by over 50% and other expenses, we are asking them to look at something which may be more manageable, since what we are proposing is not quite what they want”.
“As a result, I am asking them to take less of a margin in the current circumstances. In exchange, we will take off 50% of the customs service charge.”.
By doing this, Gonsalves said, the government could reduce the amount of what ECGC is proposing by about $5, for a 100-pound bag of flour.
“This reduction in the customs service charge by 50% will amount to a loss of revenue of close to $350k per shipment”.
Gonsalves said there are about two or three more shipments this year which amounts to about 1 million dollars EC.
Gonsalves said the ECGC is also asking for an increase in the price of feed for animals.
“I think there is a possibility for us to be able to provide some relief there also. Because you know I have to think ahead because by the time you look around Christmas would be upon us and there would be a demand for eggs”, Gonsalves said.
