by Linda Straker
- Ongoing war situation in Ukraine is exacerbating price of basic commodity items
- Bushel of wheat increased from US$800 plus to US$1,200 in March
- Cost of importing wheat for local market has increased by as much as 60% since January 2021
- Government may not be able to sustain cap of EC$15 on gas
Mike Sylvester, Permanent Secretary in the Ministry of Finance, said that the ongoing war situation in Ukraine is exacerbating the price of basic commodity items. He wants people to be mindful of the impact this can have on their livelihood and living conditions.
“We have seen the price of a bushel of wheat for example increase from US$800 plus to US$1,200 in March, and there are continuing pressures on those prices including from what is considered as shortages,” Sylvester said during a news conference.
“Like fuel, these prices will reach us. We are price takers, who have no influence on how these prices go. We have no say to determine how these prices go,” he added.
Grenada, Sylvester said imports about US$6 million in wheat products every year and that goes into our baking and cooking and many of the other bi-products such as breads, cakes, and pastries as well as animal feed. Grenada’s wheat is imported from the US market, but at present because of the shortage created by the Russia-Ukraine war, some of the distributors and suppliers are tapping into the South American market.
It is understood that the cost of importing wheat for the local market has increased by as much as 60% since January 2021.
“We do expect to see a significant increase in these prices domestically,” said the Permanent Secretary who disclosed that Government may not be able to sustain the cap of EC$15 on gas. The measure came into effect in December 2021 as part of the economic relief announced in the 2022 budget.
He believes that gas prices should return to the open market price structure where the cost is determined by the international market. “Let the people pay the EC$19 or EC$21 and have the money be reinvested back into the economy such as through safety net programmes such as SEED,” he said.
Price increases for commodities began following the global lockdown during the early days of Covid-19 due to a major shortage of supplies on the market.
Blame Joe Biden and all the sanctions that are doing nothing to stop Putin. These sanctions are just pushing Gobal starvation to an all time high. The is to usher in the Great Reset, New World Order. We are living in the last days.
This war is to bring changes to the whole world as they needed something to take over from covid and they have it .
Islands like Grenada who is dependable on just about 90% of its needs will suffer and there is more to come as from the time a local Grenadian gets up in the morning he or she is in need of something we don’t supply or make in Grenada.
So we are in the hands of the outside world in more ways than one .