NASSAU, BAHAMAS — The Retail Grocers Association maintains that the impact of the recent expansion of the Price Control Basket (PCB) will undoubtedly prove catastrophic to the local wholesale and retail industry.
The association affirmed its commitment to working with the government of The Bahamas toward ensuring that food is affordable for vulnerable Bahamians, in a statement.
The RGA said its representatives, joined by the manufacturers’ representatives and the Wholesaler’s Association, met with Prime Minister Philip Davis, Minister of Tourism, Aviation and Investments Chester Cooper, Economic Affairs Minister Michael Halkitis and other government officials on Monday to discuss their concerns regarding the expansion of the Price Control Basket (PCB) which was to take effect on Monday.
“The RGA wishes to again clarify that while the government announced that 38 items would be added to the Basket, it is in actuality 38 categories of foodstuffs, which would affect more than 5,000 items to which inventory and price adjustments would have to be made. To facilitate such changes would be a very expensive undertaking, requiring long man hours and would mean that 40 to 60 percent percent of total revenues for local wholesalers and retailers would be controlled,” the Association said.
The RGA noted that the decision was made without prior industry consultation and at a time when businesses are faced with already slim profit margins, increasing electricity costs, increased operating expenses, and theft.
“The sector employs some 4,000 persons and the expansion of the Price Control Basket will undoubtedly have a ripple effect which would prove detrimental, with mass store closures, particularly among the smaller food stores and the real potential for food shortage in the country,” it continued.
“The Association is keenly aware of the effects of global inflation and the hardships being faced across the country by many Bahamians. Our collective objective is to provide the best prices possible to our customers. It is also worth noting that customers have been able to benefit from the pass-through reductions in customs duties for some items,” the RGA added.
The RGA noted that its members have and continue to contribute unselfishly to all manner of charitable organizations and efforts throughout the country.
The association suggested the government provide a more targeted approach to relief to most in need of assistance, like a food program.
Economic Affairs Minister Michael Halkitis said yesterday that the government will not delay the roll-out of its price control expansion plans despite serious concerns and pushback from the local food wholesale and retail industry, as the government expects to have resolved all the issues by this coming Friday.
