FABAG Leads Push for Price Reduction Campaign as Food Costs Ease
- FABAG to Ghana: Let’s All Cut Prices, Not Just Talk Recovery
The Food and Beverage Association of Ghana (FABAG) is calling for a nationwide campaign to reduce consumer prices, citing early signs of cost correction in key imported commodities such as sugar and rice. The move comes as the Ghanaian cedi shows signs of sustained appreciation and inflationary pressures begin to ease.
Speaking at a stakeholder engagement with the Minister for Finance in Accra, Executive Secretary of FABAG, John Awuni, announced that the industry is already acting to pass on cost savings to consumers, with sugar and rice prices falling by 7% and 10%, respectively.
“As importers, we are aggressively pushing prices down,” Awuni said. “But unfortunately, others in the value chain are not responding.” He noted that while upstream importers have begun adjusting prices in line with currency and freight cost improvements, the benefits are not yet visible to the average consumer due to bottlenecks in retail and distribution pricing behaviours.
FABAG is now advocating for a national campaign aimed at promoting price reductions across the broader supply chain. “This must be a national effort. If others also respond, it will reflect in the lives of ordinary Ghanaians,” Awuni stressed.
The Finance Minister, Dr Cassiel Ato Forson, lauded the initiative, describing FABAG’s action as timely and exemplary. He urged other business groups, particularly the Ghana Union of Traders’ Associations (GUTA), to align with the government’s macroeconomic gains by revising prices in favour of consumers.
“We are seeing improvements in the cedi, and inflation is slowing. It’s time for businesses to reflect this in their pricing,” said Dr Forson. “I appeal to GUTA and others to support this effort so Ghanaians can truly feel the recovery.”
The interaction between FABAG and the Ministry reflects a growing recognition that monetary and fiscal stability alone is insufficient unless market actors adjust behaviours to make the gains visible and impactful. While headline inflation has begun to moderate, food prices remain a significant concern for many households, particularly in urban centres.
Dr. Forson’s comments come on the back of Ghana’s staff-level agreement with the International Monetary Fund (IMF), which is expected to trigger a $370 million disbursement in support of the country’s economic programme. The cedi has appreciated markedly recently, reaching GH¢13.29 per US dollar on the interbank market.
Industry observers note, however, that structural inefficiencies in distribution and limited competition in some retail segments may blunt the pass-through of cost reductions. FABAG’s call for a national campaign appears aimed at tackling these entrenched dynamics by encouraging voluntary compliance and fostering consumer pressure for fair pricing.
For now, the focus will be on whether other associations and market actors respond to the call. If adopted broadly, the campaign could cause a major shift in price-setting practices, linking macroeconomic gains more directly to consumer welfare.
