Reduce cost of power to curb beverage price hikes – Association appeals

The Food and Beverages Association of Ghana has called on government to halt any increases in the cost of electricity and water, to prevent another increase in the prices of beverages in the country.

The remarks come on the back of recent increase in the prices of some alcoholic beverages by as much as 20% in the country, following a multiplicity of factors including the recent introduction and revision of some taxes and levies as well the increase in freight charges.

Speaking to Citi Business News on the price increases, the Executive Secretary of the Food and Beverages Association of Ghana, Samuel Aggrey said producers will have no choice but to increase prices if the cost of production rises.

“If you look at it, electricity cost is likely to go up which will affect industry for instance. So in order for them to break even, what we are saying to government is that they have to reconsider the rates for local manufacturers, with the possibility of subsidies or a reduction in electricity charges to help the companies break even. The same applies to the cost of water.”

“If the increases are allowed it is likely that even before the middle of the year we will have a second increment again which will most likely affect the market,” he added.