Some business owners kick against GUTA’s directive to cut down commodity price

There seems to be division in Ghana’s trading community as some business owners kick against a directive by the Ghana Union of Traders Association to immediately reduce the cost of goods on the market.

The national traders’ union, in a statement, urged traders to consider reducing the cost of commodities sold on the market as the cedi appreciates against major trading currencies.

The cedi has, since the beginning of the year, seen a positive trend increasing by more than 10 percent.

But speaking on Luv FM, Executive Secretary of the Ashanti Business Owners, Charles Kusi Appiah says the forex is not the only determinant for the price build-up.

He surmises other cost components like utility tariff, cost of borrowing and taxes thwart a call for a price reduction.

“Although this is a right call, there are other factors contributing to the price build-up. As we speak now, cost of borrowing, consumption tax [VAT] is still the same. We’ve seen some reduction in inflation by some 100 basis points, but that’s not enough for a price build-up,” he told David Akuetteh on Luv in the morning.

Ashanti Regional Chairman of GUTA, Anthony Oppong, is in agreement, as he says some stocks of goods were purchased before the local currency gained some strength.

“All those stocks are not yet sold. We bought them when the dollar was selling at 16.2 cedis. So, if you want me to sell it at 13 cedis now, then it means I will make some losses. Especially for the spare parts industry, when we buy goods, it takes three months before they arrive. So, if they should sell at the price now, they could run at a loss,” he said.

But some consumers who called in the show are unhappy with the situation.

“Why do the traders immediately increase the prices of their goods when the dollar goes up, but refuse to do same when it decreases,” a caller questioned.

Another added, “They are doing this because the services they render are scarce to us. If they will be fair to us and wouldn’t want to milk us, they will definitely reduce their prices other than serving their selfish interest of maximizing profits”.

Meanwhile, the traders are expecting the prices will reduce in the coming days in adherence to the GUTA’s directive.

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