Industrialists continue to criticize the government’s approach to lowering prices. After the bakers and millers, the cement manufacturers too.

Millers do not approve of the government’s desire to lower the price of bread, even if they appreciate the policy of wanting to lower the price of a bag of flour to 15,200 francs. « We appreciate and pay tribute to the political will to lower the price of a bag of flour to 15,200 CFA francs. However, as manufacturers, we have no guarantee and no confirmed written exchange on how the reduction of 4,000 CFA francs per bag would be financed », declared Frank Bavard yesterday, member of the Association of millers and industrialists of Senegal (Amis), at the press conference organized by the National Employers Council (Cnp), to announce its conference.

Millers oppose the price cut: The State’s work is cut out

According to him, even if they are informed of this measure, they want to know how the stocks of wheat and flour they have before this government measure will be considered. « We have been verbally informed that customs duties and VAT will be waived, but we need to know how the various stocks of wheat and flour we have in our factories will be considered, because all these stocks are there and have already been paid for.   What about their customs duties, » he wondered? In his opinion, accepting this measure would mean that they would have to bear the subsidy.  In his view, millers’ current margins are very low. According to Frank Bavard, the government’s calculation based on the price of wheat does not correspond to the reality of today’s market.

« You should know that the government made a calculation based on a wheat price of 292 euros, but wheat prices are currently over 300 euros, even before starting to lower the price of flour, » he said. In the hope that « the State will make a written proposal that will make it possible to manage this somewhat unclear situation ».

In any case, this desire to lower the price of basic necessities is not without consequences for Senegal’s cement manufacturers.

« We were invited by government authorities to discuss how to reduce the price of cement. The proposal that was made was to cancel the 2,000 f parafiscal tax. The only problem we had was communicating the reduction ten days beforehand, so that the National Consumer Council could not be held immediately, and we also needed a decree », says Ousmane Mbaye, President of the Senegalese Industry Professionals’ Union. According to him, they are still waiting for the decree and ministerial order setting the new price. But in the meantime, this measure has been very detrimental to them, as it has led to poor sales. « Tthe market has been disrupted, because when the government announces a price cut on a product, consumers stop buying. For the past 10 days, we haven’t been selling, because everyone is waiting for this price cut », he said, hoping that the ministerial order and decree will come out so that consumers can buy at the new price.

But, for the moment, no one can sell at this price until the ministerial order and the decree setting it have been issued, he added.
By Justin GOMIS / justin@lequotidien.sn

  • Translation by Ndey T. SOSSEH