{"id":183201,"date":"2024-05-16T18:11:19","date_gmt":"2024-05-16T18:11:19","guid":{"rendered":"https:\/\/www.ghanamma.com\/2024\/05\/16\/engage-cement-manufacturers-to-understand-reasons-for-price-hike-agi-ceo-to-trades-minister\/"},"modified":"2024-05-16T18:11:19","modified_gmt":"2024-05-16T18:11:19","slug":"engage-cement-manufacturers-to-understand-reasons-for-price-hike-agi-ceo-to-trades-minister","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2024\/05\/16\/engage-cement-manufacturers-to-understand-reasons-for-price-hike-agi-ceo-to-trades-minister\/","title":{"rendered":"Engage cement manufacturers to understand reasons for price hike \u2013 AGI CEO to Trades Minister \u2013"},"content":{"rendered":"

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The Chief Executive Officer of the Association of Ghana Industries (AGI), Seth Twum Akwaboah, has called for a balanced approach in response to the recent directive by the Minister for Trade and Industry, K. T. Hammond, seeking to reverse the recent increases in cement prices.<\/p>\n

Speaking during an interview on\u00a0Joy FM\u2019s Midday News<\/strong>, Mr Akwaboah emphasised the need to consider both the impact on consumers and the operational challenges faced by manufacturers.<\/p>\n

\u201cWe appreciate the concerns expressed by the Minister because, as a Minister, when prices of goods are going up, you know it will affect your citizenry and you should be concerned about it. So the concern is genuine and well noticed,\u201d Akwaboah said.<\/p>\n

However, he highlighted the significant operational costs that manufacturers must cover, particularly in light of the recent depreciation of the country\u2019s currency.<\/p>\n

\u201cThe manufacturers have a cost to cover. As you know, the cedi has depreciated quite significantly over the last few months, and it has affected the cost of their operations. Cement manufacturers import the materials, and everything is paid in dollars. And since the cedi has depreciated, that means everything is going to increase.<\/p>\n

\u201cSo when you put all these together, there is an increase in operational cost, and for companies to survive, the cost is passed on to the consumer,\u201d he explained to host Emefa Apawu on Thursday.<\/p>\n

This comes after the Minister for Trade and Industry, K. T. Hammond, addressed the recent surge in cement prices by directing the Cement Manufacturing Development Committee (CMDC) to intervene immediately.\u00a0<\/p>\n

The Minister called for cement manufacturers in Ghana to reverse the recent price hikes immediately.<\/p>\n

However, Mr Akwaboah believes that instead of the Ministry issuing a directive, it should rather engage the cement manufacturers to analyse and ascertain the reasons for the price increment.<\/p>\n

According to him, a detailed analysis by the Ministry of Trade to understand the factors contributing to the hikes would help the ministry make an informed decision that benefits both the manufacturers and the consumer.<\/p>\n

\u201cThe Ministry of Trade needs to have a discussion with the cement manufacturers and then analyse to understand the increase that has come about as a result of the cedi depreciation and other factors in the market. When that analysis is done, we would see whether there is a justification for the increment or not,\u201d he said.<\/p>\n

Cedi depreciation shot up cement prices \u2013 COCMAG<\/strong><\/p>\n

In a swift response, the\u00a0Chamber of Cement Manufacturers (COCMAG) has justified the price hikes\u00a0<\/strong>in cement products. According to the chamber, the increase in the prices is largely as a result of the depreciation of the Ghanaian cedi against the US dollar and rising cost of production.<\/p>\n

In a statement signed by the Chief Executive Officer of the Chamber of Cement Manufacturers (COCMAG), Dr George Dawson-Ahmoah, the chamber explained that, the cement industry relies on importing raw materials priced in foreign currencies, particularly the dollar which has increased costs.<\/p>\n

\u201cAdditionally, some tariffs, levies, and taxes imposed by other authorities such as the Ghana Ports and Harbours Authority are also dollar-denominated, further exacerbating expenses,\u201d a part of the press release said.<\/p>\n

COCMAG stated that, in order to ensure operational viability and product quality, it is necessary to adjust the prices of cement.<\/p>\n

\"\"<\/figure>\n

<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

The Chief Executive Officer of the Association of Ghana Industries (AGI), Seth Twum Akwaboah, has called for a balanced approach in response to the recent directive by the Minister for Trade and Industry, K. T. Hammond, seeking to reverse the recent increases in cement prices. 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