CONSUMERS started to pay more for baking and counter flour yesterday when the respective 3.25 and 3 per cent increase by the Jamaica Flour Mills took effect.

Managing director of Jamaica Flour Mills Derrick Nembhard told the Observer that baking flour moved from $2,615 per 45-kg bag to $2,700, while counter flour went from $2,160 to $2,225.

The increases are a virtual double whammy for local consumers who have been forced to fork out more for basic food items owing to the March 31 lifting of the subsidy on such items.

Under that arrangement, which was effected in January, government pumped millions of dollars into the sale and distribution of flour, rice, cooking oil and milk powder, keeping local retail prices stable and shielding from increases on the world market. For the three-month period, counter flour remained at $1,800 per 45-kg bag and baking flour, at $2,030.

The price hike will affect the sale of all baked products, but one of the country's largest bakeries and distributors of baked products, National Baking Company, said it was still too early to determine exactly how.
"When the price of flour goes up, then the prices of all baked products go up significantly. We've never had such a large increase in recent history so it will be hard to predict how the market will respond," said National's director of operations, Steven Sykes.

Two elderly women who spoke with the Observer last Friday while they were shopping at a supermarket in Cross Roads, Kingston, said they feared that prices would keep spiralling until persons were no longer able to afford anything.

"Prices keep going up and the population is getting bigger so it not going to get better, but they have to do something. Something has to happen otherwise people will get fed up and will riot. You can't push people too hard," said one of the women who gave her name as J Fuller.

"The problem is things raising but wages not going up. Bills going up, food going up, clothes dear, everything dear but wages not moving an yuh have children to send to school," added Lorna Walker, the other elderly woman.
As far as strategies to cope with the increases, consumers said they would have to shop around more, diversify their diets, eat less or "bend their minds to their condition" and dig deeper into their pockets.

"Maybe we soon have to stop buy or buy less or start go market more," said Fuller.

"We either have to go deeper in our pockets or start dieting more," said Oswald Johnson and his wife Marvalin who were shopping at SuperPlus.
Meanwhile, a man who gave his name as Mr Blomfield, said while he was making a habit of shopping around for bargains, he did not accept that the increases were not controllable.

"I just left Empire Supermarket trying to find cheaper products because my money is limited and I'm not working," he said.

"But I don't believe we're told the full story as to why the cost of things are going up. I don't buy the story that it's the use of corn as a biofuel that's causing the increase. How does that affect the cost of butter, how does it affect the price of bread?" he questioned.

Rather, Blomfield claimed that politics was at the root of the problem.

"The prices were not moving until after the general elections. It might have to do with who owns the supermarkets and where their political allegiance was before the elections," he said.

Up to yesterday, counter flour was retailing for roughly $45.00 per kg while the price of bread varied from a low of $99 to a high of $276. A pack of six bullas was going for about $91, long spice buns ranged from $160 to $200 and the large pack of water crackers averaged $100.