High prices squeezing Ghanaians

By William Yaw Owusu

Wednesday June 10, 2009
Some may call it global recession, credit crunch or economic crisis; others who wish to wear political lenses may blame the current economic hardship on the ‘inefficiencies’ of government.

No matter how one looks at the situation, the current economic condition cannot be said to be favourable. In fact, it is taking a toll on everybody in the country. The poor and vulnerable are the most hit.

In some countries, the sky-rocketing prices for basic foods persistently trigger instability.

Last year around the same period, Ghana was said to be ‘doing well’ in the face of the worsening economic crises globally. It was said that a comparison of food prices within the sub- region showed Ghana as having lower retail prices compared to most of its neighbours.

As time went on, things started to get out of hand forcing the then New Patriotic Party (NPP) government to step in to introduce a mitigation package to relieve the people.

Some analysts said the then government had "performed exceptionally well” to withstand the massive hikes in food prices that had gripped the rest of the developing world.

The government led by the then President John Agyekum Kufuor in June 2008, rolled out the package to cushion Ghanaians against the impact of this global financial crisis and the rising economic hardship. The package included reduction in taxes on petroleum products and some food staples among others. But to the then opposition NDC, the move was a “mere political gimmick” because the prices of basic goods were still sky-rocketing.

Now the NDC is in office, and the situation persists, even to a higher extent.
A market survey conducted by the National Star can confirm that prices of basic items and essential commodities are going up by the day.

Prices for locally produced foodstuff have seen an astronomical rise between December last year and May 2009.

Prices for fruits generally increased within the period with some going as far as between 50 and 80 per cent. One sucker of pineapple which was sold for GH¢ 0.40 now goes between GH¢ 60 and 80. A kilogramme of oranges and bananas sold for GH¢ 0.43 and GH¢ 0.65 respectively now goes between GH¢ 0.50 and 0.54 and GH¢.0.70 and 0.72 respectively.

Vegetables also suffered a rise largely due to the fact that they are in their off-season. A 4.5 litre (gallon) size of garden eggs which sold for GH¢ 1 and GH¢ 1.5 now stands between GH¢3 and GH¢ 4 while a margarine cup of pepper selling for GH¢ 0.80 in December now goes for GH¢2. A kilogramme of onions which was sold for GH¢1 now goes for GH¢2.

However, the price for tomatoes which was sky-rocketing seems to be coming down because the off-season is winding up. A box of tomatoes which was sold for GH¢300 now sells between GH¢ 150 and GH¢200.

Staples such as yam which is also in the off-season now sells between GH¢1.5 and GH¢3 depending on the size compared to GH¢1 and GH¢2 sold in December. A sucker of plantain which was sold at GH¢5 now sells at GH¢9 with a stick sold at GH¢0.50. A sack of cassava, sold at GH¢40 now goes for GH¢70.

Cereals are also having its fair share of the prices on the market. A cup of ordinary rice sold for GH¢ 0.45 in December now stands at GH¢ 0.80 while a cup of perfume rice which was sold for GH¢ 0.80 is sold at GH¢ 1.2. A kilogramme of maize which sold for GH¢ 0.44 now goes for GH¢ 0.80 with a ball of kenkey selling between GH¢ 0.30 and GH¢ 0.50.

The prices of meat and fish also went up with a kilogramme of beef (chevon) GH¢ 3.2 in December is now selling between GH¢ 3.6 and GH¢ 4.4 while mutton which sold at GH¢ 3.6 in the same period now sells between GH¢ 4.5 and GH¢ 4.8. Salmon, a popular delicacy which was sold between GH¢ 0.70 and GH¢2 now ranges between GH¢ 1 and GH¢ 3 depending on the size while tuna which sold between GH¢ 1.20 and GH¢2.5 now stands between GH¢1.5 and GH¢ 3.

A live bird which was sold between GH¢ 5.5 and GH¢ 6.5 in December now goes for GH¢ 8.0 and GH¢ 8.50. A fresh egg which sold for GH¢ 0.15 now sells at GH¢ 0.20.
The price of edible oil is also going up. A gallon of palm oil (Zomi) sold for GH¢ 7.0 now sells at GH¢ 9.0 while regular palm oil sold at GH¢ 4.0 now sells at GH¢ 6.0. A 2.5 litre of cooking oil sold for GH¢0.70 in December now sells at GH¢ 1.0
A tin of milk which sold between GH¢ 0.4.50 and GH¢ 0.70 in December now sells between GH¢ 7.50 and GH¢ 1. 0. A cup of granulated sugar sold for GH¢ 0.40 and now sells at GH¢ 0.60

The enormous increase in prices according to financial analysts is due to fall of the cedi against the major foreign currencies, particularly the dollar. The prices of the imported products have shot up drastically because importers need to spend more to buy a few dollars for their businesses.

Strangely, those foodstuffs that are not imported have joined the bandwagon of price increases, blaming it on the relatively high prices in petroleum products.

Public reaction to the increase in prices of foodstuff is mixed. While some think it was about time government introduced mitigation packages to cushion the people against the economic hardship, others were of the view that the government needed more time to fix the economy.

Doris Ama Ahiable 36, a tomato seller at Abeka said “Things are getting harder by the day. The government should be able to come to our rescue”.

“Sales are going down. People do not have money to buy more,” Mercy Ayittey popularly called Naa Kaa, a 52 year old vegetable seller at Makola Market in Accra told this reporter.

Abdul Karim Nsor, 42, a yam seller at old Fadama now Agbogloshie said, “We are being priced out of the business. We send a lot of money to get yam from the north and always get less. Things are moving slowly and we are feeling the heat”.

Seth Opoku Manu, a 34 year old fast food joint operator at the Kwame Nkrumah Circle said, “People complain we are cheating them but the fault does not come from us, it comes from the market. You send more money and get fewer products.”

Among those who think the government needs enough time to put things right is Bright Anku, 40, a shopkeeper at Abeka Lapaz who said “We cannot expect President Mills and his government to use five months to fix a broken economy. The government certainly cannot do that if we put a lot of pressure on them.”

Mawuli Agbenator, also known as King 28, a dealer in electrical appliances has this to say. “The world is moving on and the global economic recession has shown that there are going to be hard times ahead so we should be prepared for it.”