Food stuff dealers in measured steps as prices soar

…Sachet water factories, bakeries increase product prices

…As rice dealers, others await supplies to determine new prices

At the break of the new year, over two weeks ago, many Nigerians were hopeful of a fresh start and better year ahead.

Considering the almost unbearable burden the harsh economy placed on the masses in the immediate past year, the earnest desire for a new lease of life this year, becomes necessary.

But the hope seems to be dashed already as prices of commodities are still soaring in the first two weeks of the new year, with the cost-of-living crisis feared to take another turn.

A recent market survey by BusinessDaySunday revealed that many dealers are anticipating price increase across commodities, and are not eager to sell off their goods, while some small-scale businesses are already increasing the prices of their products.

Bakeries in some areas in Lagos have increased the price of their loaves with extra N100 to N400, depending on the quality of the bread and the area they operate. Same is the case in Port Harcourt.

Also, sachet water suppliers have added an extra N100 on a bag of 20 sachets, leaving retailers to sell one sachet for N50.

Fanny Ologa, a sachet water producer, blamed the increase this January on the high cost of production, noting that it was long overdue as they barely stay afloat after buying diesel to power their generators, buy raw materials, pay salaries, taxes and levies.

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Sadly, he noted that further price increase was inevitable as the cost of production soars this year.

Survey us revealed that many foodstuff dealers are expecting updates from their suppliers in order to adjust prices, which they think will definitely go up.

Iya Mutiu, a grain merchant at Oshodi market, in Lagos, insisted that prices cannot come down now, maybe later, because the cost of transportation is still high, levies from local councils and state authorities are increasing and demand is equally high.

“They said that petrol price has come down, but diesel is high. Truck drivers that bring food items from the north pay touts and security people at every checkpoint from the farms to Lagos.

“You heard about the 40 farmers they killed in Borno, so the farms are deserted too because of insecurity. Prices of food items will not come down any soon,” she said.

But Ejike Ifemedo, a rice dealer, noted that prices of some brands are coming down a bit this January, but may not be sustained because new supplies will determine if prices are really coming down or because of the normal lull in business associated with every January.

According to him, some are down to N85,000 from N110,000 in December, some N90,000 now from N122,000 in December, but may not go further down and that may only be for January as businesses are still opening.

“After spending during the festive season, people are still faced with school fees and house rent; so, nobody is buying a full bag of rice now like in December.

“For me, that is why the price is slashed a little. But it will increase with time, when workers earn January salaries,” Ifemedo said.

At the interim, Iya Mutiu, like other food items’ dealers, is conscious of the quantity to sell, until new supplies arrive.

Also, over the weekend at a big grocery outlet in Port Harcourt, shoppers witnessed store attendants changing price tags, with those who left moments before the price change, paying the old price and those already on queue for payment, paying the new price.

On confronting one of the attendants, an inquisitive shopper was referred to the duty manager, who explained that the price change was necessitated by the update from their major supplier on current price review by wholesalers and manufacturers.

Same is the situation in most grocery stores across the country as shoppers wake up every day to new and higher prices on the shelves.

Abuja residents also witness the same as most grocery stores increase prices on the shelves as often as they wish.

According to BDSunday survey, the stores blame the increase on the high cost of transportation, high foreign exchange, scarcity of quality alternatives, and inflation.

“No grocery store will want to increase prices on the shelves at will, but the harsh economy is forcing us to do so, else we will close shop,” Sarah Pam, a senior supervisor at Jabi, Abuja-based superstore, said.

Speaking further, she explained that mall owners are also doubling their rents.

“Despite frequent hikes, some malls demand rents to be paid in dollars. The FCT council and other government agencies also come for their taxes and levies. They have served us notice since the first week of January. So, the price increase is investable except if you want the stores to close and where are the jobs for people like us who will be affected?

“The government has to help because the situation affects everyone, even Aso Rock, because they have vulnerable people in their party, villages and states,” she said.

As well, wholesalers in the open market are also adding extra money on their goods before the anticipated increase in price from suppliers.

At the trade fair complex in Ojo, Lagos, a popular hub for wholesale, some dealers think it is traditional for prices to increase every new year and they are already adjusting prices without necessarily getting price review updates from the suppliers.

Proffering solution, Chijioke Umelahi, an Abuja-based lawyer, urged the government to consider a bit of price control and monitoring this year as profit-seeking people and businesses do not care how much things cost, but how much profit they make, even when it is obvious the sellers are ripping the consumers off.

Read also: High food prices push inflation to 34.6%, 28th year high

“Fuel scarcity and cash scarcity revealed how unscrupulous some people can be when it comes to making money.

“Knowing this, the government, which claims to have the interest of the masses at heart, should safeguard that interest with enabling actions and laws.

“Yes, Nigeria is a capitalist economy, but the United States of America that preaches capitalism also has elements of price control when necessary.

Let’s not copy the West hook line and sinker or do the biddings of the World Bank and IMF to please some interests other than the suffering Nigerian masses,” he noted.

Bidemi Osifo, an economist, is urging superstores and wholesalers to look inwards, especially to local alternatives to imported products.

“We can grow the economy or come out of the present situation when everything is imported including common toothpicks.

“The government should truly encourage small scale businesses to grow and not on paper. Give them incentives, an enabling environment, tax rebates, bring down interest rates, among others to boost their operations and ability to produce for businesses here,” she said.

However, she thinks that the government should do whatever it takes to address what she calls

“The monster inflation” this year, as the dwindling purchasing power cannot sustain economic recovery.

But the humble plea of Iya Mutiu is that the government should not increase fuel pump price this year as increment causes inflation.