Shelly-Ann Thompson, Staff Reporter

Many grocery food items are set for an increase this week as, effective today, the cost of baking flour and rice will attract a 30 per cent hike in light of the Government's price support (subsidy) programme that ended yesterday.

Derrick Nembhard, managing director of Jamaica Flour Mills and Jamaica Rice Milling, told The Gleaner yesterday that the ex-factory price of the food items will revert to its original position as the Government discontinues offsetting the price of the commodities.

In the midst of price increases, one chicken meat provider has advised that there will be a three per cent hike within a week.

Price increase on corn

Dr Keith Amiel, manager for corporate affairs at Caribbean Broilers, said the three per cent increase was primarily based on the shift in the cost of corn.

About a month ago, the company also increased its prices by three per cent.

In January, the Government unveiled a $500-million price support programme to stabiliseprices for bulk counter flour, white rice, cooking oil and whole milk powder to protect the most vulnerable in the country who were affected by the rising cost of living.

Nembhard said that, while the subsidy was in effect, the price of grains and wheat continued to rise on the world market. He said consumers did not feel the effect as the Government absorbed the increases.

"Flour, for instance, has increased every month for the past three months," said Nembhard.

Commercial baking flour now sells for $2,615 up from $2,030, while counter flour will cost $2,160 up from $1,800 per 45kg bag.

Gerry Chambers, president of the Bakers' Association of Jamaica, said with the ending of the subsidy, baking products such as bread, crackers and biscuits will see increases.

"Then we have no option but to move prices. All the other inputs have gone up, such as fuel, electricity, shortening, yeast, packaging," said Chambers.

Regarding the 30 per cent hike in rice, Nembhard said the price of the commodity also increased during the past three months.

However, Nembhard said "increases are not finished" as a new Guyanese rice crop will commence soon.

"We have been given price for one month, April. After that the price will increase again from the Guyanese," he said.

Another rice source, the American brand, has jumped from $1,950 to $2,475, while the Guyanese commodity now stands at $2,375 from $1,775 per 45 kg bag.