The Cement Manufacturers Association (CMA) has rejected a directive from the Minister for Trade and Industry, K.T. Hammond, to reverse recent price increases, citing production costs and a free market economy.
The Minister had instructed the Cement Manufacturing Development Committee (CMDC) to direct cement manufacturing companies in Ghana to immediately reverse the recent increase in cement prices.
However, the CMA has refused to comply, stating that the directive is “without basis and justification”.
Dr. George Dawson-Amoah, President of the CMA, speaking to Citi News explained that cement prices are determined by production costs, including the importation of raw materials, high electricity costs, water, and the continuous depreciation of the cedi.
“It’s a free market and these manufacturers and producers set up their prices based on production costs. One cannot arrive at a retail price or selling price without taking into consideration the production costs and this is what has happened now.
He emphasised that these factors must be addressed before prices can be reduced.
“The price increase is due to the exchange rate frustration resulting from the cedi’s depreciation. They import in dollars and sell in cedis, and they change into dollars for raw materials,” Dr Dawson-Amoah said.
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