Government Intervention in Market Prices
The Minister of Trade and Industry in Lakes State, Rebecca Enock Macuac, has emphasized that the fluctuation in the dollar rate should not be used as an excuse by traders to increase the prices of commodities in the market. According to her, there is no justification for raising the prices of locally produced goods.
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Rebecca explained that local food items, such as sorghum, groundnuts, and meat, are produced within the state and therefore should not be affected by the rise in dollar rates. She confirmed that an order has been issued to reduce the prices of these local goods. The only exception is posho flour, which is imported and thus not subject to the minister’s directives.
Benefits of Buying Local
The minister urged citizens to prefer locally produced items over imported ones, citing their affordability. She also highlighted that local goods do not incur additional costs such as weigh bills and taxes, which are typically charged on imported goods. This makes local products even more economical for consumers.
Trading Regulations
According to the laws of trade, wholesalers are allowed to increase prices by 5%, while retailers can increase them by 2%. This regulated margin is intended to ensure fair pricing and prevent exploitation of consumers.
Trader Perspectives
Madom Macok, a groundnut trader in Rumbek, shared his experience of buying groundnuts at SSP 37,000 per basin from villages and selling them at SSP 40,000 in Rumbek. His profit margin is SSP 3,000, from which he has to pay taxes and rent for his selling space. Abraham Makuei, the chairperson of the Butchers Union in Rumbek, confirmed that they have reduced the price of meat from SSP 26,000 to SSP 23,000 per kilogram, as directed by the government.
Challenges Faced by Traders
Despite the reduction in prices, Makuei mentioned that buying a cow in Rumbek for SSP 3 million results in significant losses for them. He emphasized the importance of proper testing of cows before slaughter to ensure they are healthy and disease-free, which adds to their costs.
Market Shortages
Traders are complaining about the shortage of local produce in the market. This scarcity could potentially undermine the government’s efforts to control prices and encourage the purchase of local goods.
Conclusion
The government’s intervention in market prices aims to protect consumers from price gouging and promote the sale of locally produced goods. While traders face challenges such as high costs and shortages, the emphasis on buying local could benefit both consumers and the local economy in the long run. By understanding the reasoning behind the government’s decisions and the perspectives of traders, consumers can make informed choices that support the local market and contribute to its stability and growth.
