K.T. Hammond meets manufacturers over price escalation

The Ministry of Trade and Industry (MoTI) and the Chamber of Cement Manufacturers, Ghana (COCMAG) have reached an agreement to conduct periodic consultative meetings with industry stakeholders, focusing on developments in cement manufacturing, bagging, and distribution.

The aim is to address critical issues in the sector, particularly preceding any announcements of ex-factory price changes by individual companies.

Minister K.T. Hammond initiated the meeting to express concern about the escalating cost of cement at the retail level and its adverse economic impact.

He questioned the sale of a bag of cement at ¢95.00 in certain regions, including the Accra/Tema Municipalities.

"The Minister entreated the industry to take cognisance of the widespread effects of price escalation and the need to closely monitor and exercise control over the recommended exfactory price margins of distributors and retailers of their respective grades of products across the country," stated the MoTI.

Key measures were agreed upon for urgent implementation to stabilise prices, including individual companies publishing recommended distribution and retail prices for various grades of products in their respective distribution zones.

Additionally, companies are mandated to enforce quality standards and weights of cement products to counter the production and distribution of substandard items.

Stakeholders are also expected to collaborate on exploring the possibility of introducing a uniform cement pricing formula, ensuring consistency in retail pricing across the country, and considering key cost variables.

The MoTI assured the public that these measures, among others deemed necessary, will be implemented in collaboration with the Chamber of Cement Manufacturers, Ghana, to ensure justifiable and reasonable adjustments in prices.