Flour price jumps by 6 percent from Monday

National Flour Mills (NFM) will be increasing the price of flour by six percent, effective Monday, February 9, a statement from the company said.

The State-owned company justified the price hike, saying that in recent months the cost of wheat has been increasing on the world market, in some cases by as much as 30 percent. NFM official Donna Cox said according to their calculations, a hops should only go up by .6 cents; a doubles’ should not go up more than .47 cents more and a roti, 1.2 cents. She said consumers should be on the lookout for drastic price increases in these staple food items.

In January 2003, NFM flour price went up by 22 percent and reduced it by 11 percent five months later. On this latest increase, the company said that low inventory levels of wheat globally along with significant increases in freight costs were  responsible for the bullish state of the market. Asked why NFM could not absorb the increased cost of the wheat, Cox said NFM had already absorbed some of the costs. She noted that if NFM had not done so, the price increase would actually be higher.   

The shortage has driven wheat prices up on the world commodity markets which in turn has caused a significant hike in the price of flour, NFM said in its statement. “NFM therefore has no alternative but to increase the price of flour,” the statement said. “Trinidad and Tobago, along with the rest of the world, must now pay more for flour.” The company, in its statement, said it continues to seek ways of improving its operational efficiencies in order to maintain its competitiveness. “If and when world wheat prices are reduced, such savings will be passed on to the consumer,” NFM said. President of the Bakers’ Association and owner of Affan’s Bakery in San Fernando, Ronald Austin, said that “the bakers now have to make the cake and pay for it to.”

He noted that when flour prices were increased last year and later decreased, promises were made by the relevant parties that the prices would not be increased for some time to come. Tom Chin Fatt, a director of the association and owner of Linda’s Bakery in Maraval, said that this increase was not at all expected and that they had heard nothing until receiving the fax from the National Flour Mills (NFM) on the price increase. Asked if their prices were going to go up, he said he was still assessing this. A release from the Ministry of Legal Affairs, Consumer Affairs Division, expressed Minister of Legal Affairs, Danny Montano’s disappointment over the increase and the resultant effect it would have on the pockets of all consumers.

Montano, the release said, would be meeting with the Bakers’ Association on Monday afternoon to discuss downstream implications of this increase for consumers. However, neither Austin nor Chin Fatt could confirm this.