The Ministry of Trade and Industry (MoTI) and the Chamber of Cement Manufacturers, Ghana (COCMAG) have reached an agreement to conduct periodic consultative meetings with industry players.
These meetings aim to address developments in cement manufacturing, bagging, and distribution, particularly before the announcement of ex-factory price changes by individual companies.
According to a statement from the MoTI, the Minister, K.T. Hammond, convened the meeting to express concern about the increasing cost of cement at the retail end and its potential adverse economic impact.
The minister questioned the reasons behind the high retail prices, citing instances where a bag of cement was selling for ¢95.00 in certain parts of the country, including the Accra/Tema Municipalities.
“The Minister entreated the industry to take cognisance of the widespread effects of price escalation and the need to closely monitor and exercise control over the recommended ex-factory price margins of distributors and retailers of their respective grades of products across the country”.
According to the statement, the stakeholders have agreed on several measures for urgent implementation to stabilize cement prices in Ghana. These measures include:
Publication of Recommended Prices: Individual companies are required to publish the recommended distribution and retail prices for various grades of products sold in each of their respective distribution zones.
Enforcement of Quality Standards: Companies are urged to vigorously enforce quality standards and weights of cement products in the market to curb the production and distribution of substandard cement products.
Exploring Uniform Pricing Formula: Stakeholders are expected to collaborate on exploring the possibility of introducing a uniform cement pricing formula. This formula aims to ensure uniformity and consistency in retail pricing across the country, taking into account key cost variables.
“The Ministry would like to assure the consuming public that these and any other measures necessary will be implemented in collaboration with the Chamber of Cement Manufacturers, Ghana, to ensure price adjustments are justifiable and within reasonable limits”, the statement ended.