By Sue-Ann Wayow
THERE has been a sharp increase in the cost of grain over the last four months and National Flour Mills Limited (NFM) is trying to absorb costs as much as possible.
The company, one of the largest distributors of flour, stated on Thursday that the prices of wheat, yellow corn and soybean have increased by 26%, 60% and 45% respectively.
NFM stated, “Current projections indicate that global wheat consumption will hit a record high in 2021, driven by the demand for food and seeds as well as industrial uses. We have also seen strong upward trends in corn prices, fueled mainly by the surging demand for animal feed and transition toward the use of biofuels.
“Escalating shipping charges have also contributed to higher prices for raw materials, further challenging our ability to absorb increasing input costs.”
NFM stated that the global grain situation will continue to be monitored and options evaluated to ensure that operations can be conducted profitably.
The company did not state whether the price of flour will increase in the near future.
Agriculture Minister Clarence Rambharat told AZPNews.com, “Both the Minister of Trade and Industry and I have spoken about this for the past year. In particular we have pointed to the same factors that NFM refers to and we have said importers are absorbing a portion of the increases.
“We see the trend continuing through 2021 based on supply levels, production levels and the realities of doing business amidst lockdowns and restrictions.”
He said that a Cabinet appointed committee co-chaired by Ministers Paula Gopee-Scoon, Rohan Sinanan and himself meet regularly with the business sector, supermarkets, agro producers to discuss such issues.
And he said government will continue to advocate for the use of local carbohydrates and starches including banana and ground provisions.
