Importers warn of food crisis

SAYING it did not want to “add to the amount of crisis in Trinidad and Tobago,” the Independent Importers Committee (IIC) yesterday warned that the nation could face a food crisis in the next two years unless government reduced or removed duties, taxes and VAT on all food items. Addressing a news conference in Westmoorings, IIC chairman Balliram Maharaj said his committee was not trying to alarm the population, but simply trying to persuade government to aggressively address the factors which could create a food crisis in TT. In a February 9 letter to Trade and Industry Minister Ken Valley, Maharaj said increased freight charges, new shipping charges, inefficiency at the nation’s ports and global increases in food prices have caused many companies to increase prices of basic commodities between five and 15 percent within recent months.

The letter was copied to Prime Minister Patrick Manning, Legal Affairs Minister Danny Montano and Junior Finance Ministers Christine Sahadeo and Conrad Enill. Among the affected commodities are cheese ($445 per 44-lb case — nine percent increase,) cooking oil ($217 VAT inclusive — 64 percent increase) and peanuts ($201.85 per 25 kg bag — 47 percent). Maharaj also indicated that constant demand for these and other basic commodities and the weakening of the US dollar against other currencies make it increasingly difficult for local importers to protect consumers from rising food prices. 

He said the importers have been attempting to do so through smaller mark-ups, but this could leave small businesses vulnerable to larger competitors. Maharaj also urged government to remove the five percent duty on cheese and split peas which it promised to do in the 2004/2005 Budget. Maharaj said government could help the situation by removing VAT from “all (food) items consumed — if not now, definitely in the next budget,” removal of the gas tax and the improvements of operations at the nation’s ports (particularly Port-of-Spain). Maharaj also suggested that government consider changing its policy “on the social employment in agriculture, and making agriculture a part of prison reform.”

When considering food commodities which could not be produced locally in large enough quantities to feed the population, Maharaj advised government to closely examine the Common External Tariff and other world trade agreements which protect them. “We must consider the possibility of a food crisis in the near future and we must be able to feed ourselves. I am now calling on all citizens to join us in this to ask the government to reduce duty on all food products and remove the VAT,” he declared. Maharaj hinted that if some of the importers’ recommendations were implemented, it could lead to a reduction in food prices in TT.