The Ministry of Trade and Industry has indicated that it held discussions with the National Flour Mills earlier today, following the recent announcement by NFM to increase the wholesale price of flour.
A media release issued by the Ministry today, said NFM has reviewed the proposed price increase for Hibiscus Flour, the brand that is used by significant segments of the population, and agreed to reduce the increase of all sizes of this item from 19% to 10%. NFM has also agreed to limit the increase in the retail price of Ibis Flour, its flagship brand, to 17% down from 19%.
The Ministry said while this will affect the company’s margins, NFM has committed to exploring all possible avenues to see how and where it can eliminate other costs to maintain commercial viability. The Ministry has also noted that the company has given a commitment that should the price of wheat fall; it will reduce prices to ensure that consumers benefit from the reduction and continue to get the best value for money.