The General Agriculture Workers Union (GAWU) is warning of a possible significant increase in the prices of foodstuff if the policy on the proposed import restrictions on 21 items is implemented.
The government is seeking parliament’s approval to restrict the importation of the 21 goods to help reduce the country’s import bill and grow the local manufacturing industry. They include rice, poultry, animal and vegetable oil, margarine, fruit juices, soft drink, mosquito coil and insecticide, soaps and detergents, fish, clothing and apparel and cement.
But GAWU is also worried the development could result in some artificial food shortages on the market.
General Secretary, Edward Kareweh, told Joy Business existing government policies have already undermined production.
“When you were putting in place measures on the back of government-owned policies which have undermined production, then you create a very big situation in the economy.”
“For instance, the discounted benchmark value policy was implemented by the government since 2019. For all these years, it has undermined domestic production. So a year after you used the policy to weaken the capacity of domestic industries to produce, you quickly come back and say I’m going to restrict imports”, he argued.
“When you do that, the likely of prices going up is very high because you have not actually supported the domestic producers to increase their capacity to be able to meet the shortfall that the imports will bring”, he added.
The government’s proposed import restrictions are aimed at striking a balance between protecting domestic industries and ensuring an adequate supply of essential goods.
