Prices of goods in Ghana have generally reduced, and traders who refuse to adjust their prices are only hurting themselves, President of the Ghana Union of Traders’ Associations (GUTA), Clement Boateng, has said.
Speaking on Joy News’ PM Express on Monday, Boateng stated that the cedi’s appreciation has created gains for the business community, and those gains must be passed on to consumers.
He criticised what he described as a deliberate refusal by some traders to reduce prices, even as input costs have fallen. Boateng stated that he sees the action of not wanting to reduce prices as a deliberate issue, arguing that some people refuse to adjust prices irrespective of the fact that the commodities they are using have gone down.
According to him, the problem goes beyond business decisions and reflects an attitude in the marketplace. He stated that he sees that as an attitude of some Ghanaians that, irrespective of whatever situation they find themselves in, they will not let their compatriots also enjoy the gains that have been made.
Boateng maintained that the cedi’s appreciation is no longer in doubt and has been sustained for some time. He stated that it is an undeniable fact that the cedi has appreciated for quite some time.
He added that the business community has benefited, and it is only fair that consumers also see relief in their prices. Boateng stated that the business community has made some gains, and definitely, the gains made should be passed on to the consumer, for the consumer to also enjoy a bit of what has happened in the marketplace.
When asked directly by the host whether that had happened, the GUTA President was emphatic. He stated that it has happened across the board, insisting that price reductions have been widespread.
However, he admitted there are exceptions, describing them as bad nuts in every community. He stated that people have made up their mind that they will not reduce their prices.
Boateng warned that such traders operate in a competitive environment where refusing to reduce prices can backfire. He stated that he pities those people, because the market they are in is a very competitive market.
He explained that most businesses rely on credit facilities and turnover, meaning traders cannot afford to hold goods while others sell quickly. Boateng stated that the business they do uses facilities, and businesses thrive on turnover.
He cautioned that any trader who insists on keeping prices high will lose customers to competitors who sell faster and restock more quickly. He stated that if a trader sits behind goods and refuses to reduce prices for the consumer, they do so at their own expense.
Boateng added that the neighbour will sell fast and then bring in more goods to make the turnover they want, and their business will thrive, while the stubborn trader will sit beside their goods and will not make any sales.
Boateng said the broader evidence of falling prices is also evident in the direction of inflation. He stated that generally, prices have gone down, and that is why inflation also seems to be going down.
To explain his point, the GUTA President defined inflation as the purchasing power of money. He stated that inflation simply means having a purchasing value of money on either goods or services.
On the key issue of prices, he concluded with a firm statement. Boateng stated that if one wants to talk about prices of goods, prices of goods have generally come down.
The Ghana Union of Traders’ Associations represents importers, wholesalers, retailers and other commercial operators across the country. The association has been at the forefront of advocacy on trade policy, taxation and market regulation.
