FABAG Announces Gradual Drop in Food and Beverage Prices, Calls for National Price Reduction Campaign

By: Ernest Afram

The Food and Beverage Association of Ghana (FABAG) has announced a downward trend in the prices of key imported commodities, notably sugar and rice, attributing the development to the recent appreciation of the Ghanaian cedi.

According to FABAG, prices of sugar have declined by about 7 percent, while rice has seen a correction of around 10 percent. The Association says further reductions are expected in the coming weeks as market conditions improve.

This development follows the cedi’s strengthening from over GH¢16 to the US dollar at the beginning of the year to the current rate of approximately GH¢13.2. Industry analysts see this improvement as a positive signal for inflation management and consumer relief in the coming months.

However, FABAG cautioned that the price reduction process will be gradual. Executive Secretary of the Association, Mr John Awuni, explained that existing market stocks were imported when the exchange rate was much higher. As such, consumers may not experience immediate price relief at the retail level.

“The Ghanaian market largely operates on a credit system, Goods currently on the market were procured when the cedi was weaker. Until these stocks are cleared, and newer imports priced with the stronger cedi arrive, the full benefit of the exchange rate gains may not reflect in prices.” He said.

Mr Awuni was speaking during a stakeholder engagement with the Minister for Finance, Dr Cassiel Ato Forson, held in Accra. He commended the government for taking steps to stabilize the macroeconomic environment and stressed FABAG’s commitment to supporting the broader economic recovery agenda.

“Importers are already pushing prices down at the wholesale level, but unfortunately, other segments of the value chain, including transporters, retailers, and middlemen, are yet to align. That is why we are calling for a national effort to ensure the benefits reach the average Ghanaian.” He said.

FABAG has thus made a bold appeal for a nationwide price reduction campaign, urging all actors in the trading, logistics, and retail sectors to adjust their pricing in line with current economic conditions.

“We believe this must be a collective response, we are ready to do our part, but the effort will only be meaningful if all stakeholders come on board. It’s time to reflect the improving fundamentals in our prices.” He said.

In response, Finance Minister Dr Cassiel Ato Forson lauded FABAG’s leadership and described the Association’s move as timely and responsible. He emphasized that the economy was showing signs of recovery and called on other trader groups, particularly the Ghana Union of Traders’ Associations (GUTA), to emulate FABAG’s example.

“The strengthening of the cedi and declining inflation figures are clear signs that the economy is on a positive path, I appeal to businesses to reflect these gains in their pricing strategies so that ordinary Ghanaians can truly feel the benefits of recovery.” Dr Forson said.

The Minister expressed optimism that if the private sector collaborates effectively with the government, the current gains will be sustained and extended across all sectors. FABAG’s intervention is being viewed by many observers as a significant step towards building consumer confidence and cushioning households from persistent cost of living pressures.