Proposed electricity rate hike will have significant impact on cost of  flour and cooking oil

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Proposed electricity rate hike will have significant impact on cost of flour and cooking oil

The National Flour Mills (NFM) is bracing consumers for possible increases in the cost of flour, cooking oil, and even animal feed, due to the proposed increase in electricity prices.

NFM’s Chief executive officer, Ian Mitchell, said the proposed rate hike will have a significant impact on its costs.

In an Express interview, he said: “The question is going to be: can we absorb it? Already we have started looking at what the approach should be to allow us to mitigate and absorb those costs without passing them on.”

Mitchell said the NFM had run some numbers and determined that the cost will be high and the company is now developing plans on how it can manage costs by becoming more energy efficient and reducing its demand on the grid.

He said: “While we have not advertised that prices have been reduced, what we have done is we have offered deals and promotions that have effectively resulted in a reduction in prices to the consumer. So the consumer would have seen that.”

Mitchell noted that the price of cooking oil came down some months ago as NFM passed on the benefits of lower commodity prices.

“There is a lot of emotional connection with flour and we are trying just to do what is right when we can pass on whatever savings to the consumer without making a big fanfare about it,” Mitchell said

He added, “Corn and soybean meal, on the other hand, I think right now we have record prices for soybean meal which is used as a protein source in animal feed. We reduced prices of our all-purpose feed last year and continued to reduce prices a little bit more in January, in spite of those changes in prices we see for soybean.”

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