Flour prices up 39%; NFM blames external factors

The National Flour Mills (NFM) in is pushing up the price of flour in Trinidad and Tobago. The news follows a reported shortage of flour and speculation that the NFM had been holding back supplies in anticipation of the price increase. NFM had denied that, saying there was no shortage.

In newspaper advertisements NFM said consumers would have to face adjusted prices of between eight and 39 per cent.

The company said the price adjustment is “due to the continuing trend of price increases internationally for raw materials (in particular wheat and corn), and other external factors.”

It said it has no control over the price increases since commodity prices and other attendant costs have risen steadily over the last 18-24 months.

The price of wheat has been steadily rising. In August last year, it went up by 26 per cent and in February this year there was a further 25 per cent increase.

NFM cites other reasons for pushing up its prices, among them:

• A significant escalation in demand for wheat by large economies such as China and India
• Adverse weather conditions and changing climate patterns globally which have negatively impacted wheat production
• Land designated for wheat production internationally is now being used to produce corn for bio-fuel
• Key wheat producing countries Argentina, Australia and Russia are no longer exporting wheat

The new price of flour would have an across the board effect on consumer prices for a variety of goods from bread and pastries to roti and doubles, all of which use flour as their main ingredients.

The additional cost comes in spite of a temporary CARICOM initiative to suspend the common external tariff (CET) on a variety of good imported into the region.