Yesterday, the government issued a formal warning to millers, who decided to suspend flour production, to continue their activities in line with the newly-agreed prices.
The government’s reaction to the halt of flour production by the Association of millers and industrialists of Senegal (Amis) was swift. Yesterday, the government gave the millers formal notice to continue production while respecting the newly-agreed prices. « In a press release, Amis disputed the measures taken on flour and decided to suspend the production and sale of bakery flour, with the aim of compromising the supply of bread to households. The government strongly condemns this attitude », said the Minister of Industry and Trade. The government is taking a tougher stance, issuing a firm formal notice to millers and asking them « to continue flour production activities, in compliance with the newly-agreed prices ». « If they fail to do so, the government will assume all its responsibilities, without excluding any option, in order to ensure the correct and regular supply of the market », thundered the government.
Commodity price cuts: The State in controversy
Dr. Serigne Guèye Diop explained that « the determination of the new wheat flour prices is the result of technical analyses rigorously based on a structuring of prices in line with the evolution of international market costs and the updating of other charges. The analyses carried out by the relevant departments have shown that there are major differences in millers’ supply costs, with CIF (cost, insurance, freight) ranging from 241 euros (150,000 CFA francs) to over 300 euros (200,000 CFA francs) per tonne. According to the Minister, « analyses show that milling companies are overestimating their costs, reflecting dubious commercial practices that can be likened to abnormal acts of management ». For the period from March to June 2024, it was found that the subsidy would not exceed 225 CFA francs per 50kg bag. Based on projected costs at the end of 2024, calculations show a cost per bag of around 15,200 CFA francs ».
In his opinion, if the State were to subsidize milling companies, this would not exceed 882 francs per 50kg bag.
By Dialigué FAYE / dialigue@lequotidien.sn
- Translation by Ndey T. SOSSEH