The General Agricultural Workers Union (GAWU) has warned of an impending hike in the cost of food items on the market.
This warning follows the announcement by the Concerned Drivers Association of Ghana of a 15% transport fare increase, effective July 22, due to surges in fuel prices and other essential items such as spare parts.
In an interview with Citi Business News, GAWU’s General Secretary, Edward Kareweh, stated that the timing of the fare increase is unfortunate as it coincides with the rainy season, which further deteriorates rural roads.
This, he said, will increase costs for farmers transporting produce from rural areas to urban centres.
Edward Kareweh emphasised that the ripple effects of transport fare hikes on general goods and services could lead to higher food prices and increased food inflation.
“Some transporters may call off or abandon that type of business because if it becomes too expensive for them to operate, they may withdraw their transport there.
“When they do that, there will now be a shortfall in the transport and the few that are there will now also raise prices to be able to keep up. There is no specific formula, what is clear is that there will be further increases in food prices.
“As to how much that will happen, what we can say categorically is that it will be more than the proportionate increase. If the increase is 15% in transport, you should expect that food prices will go [up] generally more than,” he said.
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