ST JOHN'S, Antigua, CMC:

The government is hoping its decision to waive key inputs in the production and sale of bread will help shield consumers from the increasing cost of the product.

The announcement, made by Finance and Economy Minister Dr Errol Cort, came as the government continues to fight a 36 per cent increase in the cost of flour.

He noted that bread was a regular staple in the diet of Antiguans and government, therefore, felt it necessary to find a way to counter the increasing cost of flour.

"We are concerned in respect of the ultimate price of bread and the government, therefore, will play its part in an integral manner to cushion any proposed increase in the price of bread having regards to any increase in the price of flour," Cort said.

"We have already gazetted the necessary instruments to give legal effect to the removal of all duties on baking powder and yeast. The duties as they stand are 15 per cent on both products."

The government has also waived the 10 per cent customs service tax on yeast, shortening and the plastic bags used for packaging.

But even as the government subsidy was announced, bakers said it was too early to determine exactly how much residents would pay for bread this weekend.

Sourcing a cheaper way

"I think that (the subsidies) will go a long way in assisting us but, at the same time, because of the percentage that the flour has increased by, we still at this time are trying to see how we can keep the price as it is," Bakers' Association spokesman Patrick Collbourne said.

In an effort to source flour at a cheaper rate, the Baldwin Spencer administration has opted to take advantage of its derogation from Article 164 of the Treaty of Chaguaramas which binds Organisation of Eastern Caribbean States (OECS) territories to buy flour from other OECS territories.

As a result, the twin-isle state has sourced flour from Guyana at a rate lower than the OECS suppliers and, according to the finance minister, the new supplier is willing to commit to a flat rate for the next six months.

Cort said the government will continue to find ways to shield consumers from the hike in the price of flour.

"The government of Antigua and Barbuda has agreed to work closely with the Bakers' Association and the bakers of this country to devise modalities that would seek to cushion the impact of any increase in the cost of four," he said.