Fiji Labour Party Leader Mahendra Chaudhry says the government must intervene and provide relief from the sharp hike announced in the price of flour.
Chaudhry says the hefty increase will send the majority of our families in the medium to low income brackets reeling as flour is an everyday essential food item.
He says it will lead to a rise in the price of bread as well as the cost of making rotis, two of our most staple local diet items and at a time when so many of our families are unable to afford one decent meal a day.
Chaudhry says the government must provide urgent relief and remove the 9% VAT it imposed on basic food items. He says it is most insensitive to simply say that global prices for wheat are going up and there is nothing we can do but pass it on to the consumer.
The Labour Leader has also suggested the Fijian Competition and Consumer Commission look at the profit margins of the manufacturers as records show they are making sufficient profits and are in a position to absorb some of the increases as part of their corporate social responsibility.
Minister for Economy, Aiyaz Sayed-Khaiyum had highlighted last month that wheat prices are expected to go up. He said flour is a price control item, however, if the input cost is higher and it gets higher, they expect the prices to go higher.
Sayed-Khaiyum had also stated in parliament that they are working behind the scenes to see how they can mitigate inflated prices of items.
