Cabinet to discuss flour price hike with CARICOM Heads of Government
By Terresa McCall
Reporter-SKNVibes.com
~~Adz:Left~~ BASSETERRE, St. Kitts: Cabinet has expressed its intention to discuss, at the upcoming CARICOM Heads of Government Meeting, the possibility of “derogation from article 164” of the Treaty of Chaguaramas as a means of allowing flour importers the option of importing the staple from countries outside of OECS.
In the most recent Post Cabinet Briefing, it was disclosed that during last week’s Cabinet meeting, Cabinet made discussions about the “imminent substantial increase in the price of flour within the OECS region” its first order of business.
The briefing highlighted “the increase in cost of raw materials and the high cost of electricity in their producing jurisdictions” as the reasons stated by flour producers, St. Vincent and the Grenadines and Grenada, for the need for a price hike.
The correspondence further explained that while the Government of St. Kitts and Nevis is cognizant of the importance of article 164 of the treaty, an increase in the price of flour at this stage would bring with it serious implications for bakers and consumers, thus the need for some sort of intervention.
“In the meantime, under article 164 of the CARICOM treaty, flour imported by OECS countries from the wider CARICOM region or from countries external to CARICOM is subjected to a tariff so as to give protection to the flour industry in OECS countries.
The Government of St. Kitts and Nevis recognizes the importance of article 164 of the Treaty of Chaguaramas in protecting sensitive industries in the region but strongly believes that an increase in the price of this basic commodity, flour, at this time would do great harm to bakers and consumers alike. The government believes that flour importers should be allowed, with the appropriate approvals, to import flour from any country they choose, without restriction.”
If, having taken its concerns to the CARICOM Heads of Government, Cabinet is successful, “flour will be imported from cheaper jurisdictions for at least a period of time.
Presently, the government’s Supply Office imports all bulk flour as a measure to reduce import costs. Additionally, government purchases a 100lb bag of flour for $94.60 and sells to bakers at a price $86.00 per bag. This measure is to assist in curtailing the cost of flour products passed on to the consumer.”
