The National Milling Company of Guyana Inc (NAMILCO) has increased the price of flour by 15 per cent with immediate effect.
A statement from the company on Friday noted that this increase is largely due to the Russian invasion of Ukraine.
“Over the past few days, however, the price of wheat has skyrocketed!
“The price of wheat today is 40% higher than it was on February 15, 2022, just three weeks ago. During this period, we have also seen increases in the cost of packaging, additives, and just recently, fuel. Consequently, we can no longer sustain our operations at our current Flour Price levels.
“Regrettably, with immediate effect, we must increase prices by 15% to ensure the continued supply of these important commodities,” the statement noted.
The company said it will work at leveraging economies of scale available (e.g., through wheat vessel ownership) to mitigate some of the adverse impacts of freight logistics, market access and raw material supply.
According to NAMILCO, manufacturing companies worldwide are experiencing unprecedented increases in the costs of raw materials, freight, packaging materials, energy, and other inputs.
“NAMILCO Guyana has not been spared the impact of these rising costs, and when forced to implement price increases last year, we absorbed as many of these cost escalations as we could, only passing costs on to our customers where there were no other options.”