APR 24

The Grenada government says that the significant rise in the cost of rice and milk on the local market are due in part to the increases in global demand over supply.

In recent times this country had witnessed a sharp rise in the cost of milk from $EC4.38 per pound to $5.21 per pound. In the case of rice it has moved from $EC1.21 per pound to $EC1.65 per pound.
Agriculture Minister Gregory Bowen met last week with the Marketing & National Importing Board (MNIB) to discuss the recent increases in the (CIF) price of Full Cream Milk from Europe and rice from North America.

The Minster also met with Grenada Rice Mills another major importer of the consumer item in the country. Government officials say that other major contributing factors to the increase in the cost of milk are the strengthening of the Euro against the United States dollar and the killing out of stocks in countries affected by mad cow disease.

In the case involving rice, trade officials pointed out that the increase is because of the reduction in supply in the US and other major producing countries as well.

They say it is also because of an increase in demand from new buyers in Latin America and other net exporting countries as well as the reduced stocks due to the demand exceeding supply.

Officials from the Ministry of International Trade have announced during a news conference Tuesday that an agreement was reached to modify the cost structure and reduce the wholesale price per bag (55 lbs) for milk. It will now move from $EC249.24 to $EC238.48 and the retail price to consumers from $EC5.31 to $EC4.99 per pound.

In the case of rice the reduction is from $EC133.41 per bag to $EC120.00 and the retail price to consumers from $EC1.65 to $EC1.45 per pound. The wholesale price will take effect immediately. However, the change in retail price will take effect when present stocks held by retail shops are exhausted.

Strategic Policy Advisor in the Ministry of Foreign Affairs and International Trade Dr. Patrick Antoine, Director of Trade Oliver Joseph and Director of Statistics Curlan Gilchrist briefed the media on the situation involving rice and milk on the international market.
Dr. Antoine told reporters that he does not expect the increase expected to last saying that there could be a reduction in the price of rice in the next 6 months.

He said however that in the case of milk he is not certain when the price of the product will reduce since it will be determined by the factors of production.

Director of Trade Oliver Joseph told reporters that there are no import duties on rice and milk in the country and so the increase in the costs of those products have nothing to do with government.
Director of Statistics Curlan Gilchrist disclosed that his Ministry is strengthening its price control department to ensure the reduction in the price is passed on to the consumers.