Consumer Association Critical of Flour Subsidy
Accuses Bakeries of Abuse; Proposes Two Alternatives
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The Consumer Association criticized the Ministry of Economy and Trade over its flour subsidy policy. Such policy allows the bakeries to abuse the subsidy, it said in a statement issued today. The bakeries are demanding an increase in the amount of subsidy, and threaten to stop the production of bread unless their demand is met by February 18. “The fact of the matter is that the subsidy is a big lie. Its bulk is not channeled to the consumers,” the statement said. “All agreements between the ministry and the Bakeries Association were reached without consulting with the Consumer Association,” it said. The association proposed two alternatives. The first is to remove the subsidy and let the market forces determine the price of bread. “And if that works, a mechanism will be established to subsidize bread parcels for the poor under the supervision of the local authorities.” The second alternative is to maintain the subsidy but within a new framework. Such framework will be supervised by representatives of the Consumer Association, the General Confederation of Labor Unions, (GCLU), the Ministry of Economy and Trade as well as the owners of bakeries and mills. The new mechanism will depend upon a variable index that moves in accordance with the indicator of prices, which will be administered by representatives of the same organizations, the statement said.
Date Posted: Feb 10, 2011
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