Finding deals and sales has become a game for some, but in St Lucia, some supermarkets are being accused of stacking the deck. Over the last few weeks, the prices of goods have been on the increase causing even more worries and anxiety as St Lucians await the implementation of the Valued Added Tax (VAT).
On a normal shopping day, this STAR reporter observed the huge increase in peanut butter at a local supermarket—a price that was in the region of EC$11 for an 18 ounce jar is now EC$17.25 and a 28 ounce jar is now, guess what, a whopping EC$27.29. While some basic items are insignificantly changed, the prices on certain items at the supermarket are at an all-time high.
It is for that reason this reporter sought a comment from the Acting Director of Consumer Affairs, Mary Isaac who confirmed that prices have been climbing the ladder in the last few weeks.
“We are aware that prices are increasing every day in the supermarkets. Though we have price control, we do not have control over all prices; we only have control over a list of items. So there is not much that we can do in the control of these other items,” said Isaac.
She says even the controlled price can be subject to change as the price is dependent on the C.I.F value of the item and the import cost.
“It is unfortunate though, because when you look at the prices of those items in countries where they originate, they are so much cheaper and even when you can see the freight, insurance and transportation, I still do not think there is or can be justification for those kinds of prices that we are seeing on the supermarket shelves in St Lucia,” she said.
While she did not want to confirm what many consumers are saying is an opportunity for supermarkets to maximize their profits on items that may be reduced in pricing after the implementation of VAT, she did say that the possibility does exist.
“From my own observation, prices have been going up every week. Some things go up by two, three and sometimes five dollars in the stores. The price of milk has been jumping by two dollars and three dollars over the past few months.
“I am really sympathizing here with consumers and even the price of bananas has gone up since Tomas. We cannot even really talk of bananas anymore; it has become an expensive item, including ripe bananas. I really do not know where we are going in terms of trying to control cost of goods out there, I really, really do not know.
“In terms of the VAT, I am at a loss as to what the people are trying to do. All I know is that right now, they are maximizing their profits. I believe they have been doing that for a while, I don’t know if it has anything to do with VAT in particular, maybe it might. We would have to monitor the market to determine whether this is actually happening and we have not done that.”
Responding to whether there are any available forms of protection on the quick rising cost of groceries in the supermarket for consumers, Isaac said that currently there are none but she did advise consumers to be very conservative when shopping, because according to her, it will be the only way to safeguard themselves from the alarming hike in the prices at the supermarket.
“You look for things that are in season and consume more of those things over the things that are not. You look at the cost of the things that are imported as opposed to the cost of the local items. For instance, instead of buying an apple, you eat a mango; that would be a lot cheaper because look at the price of apples.”
She also stated that Government would need to pay very close attention to the prices of goods before VAT and post VAT to ensure that consumers pay the right prices on items purchased in supermarkets.
“Government can put a team or a program in place where they can monitor prices prior to VAT and do a post VAT assessment of prices and perhaps, call suppliers together and discuss what would be best for consumers. I don’t know if we can include more goods on the price control list; that could be another route to go because you would control the mark up of the items based on the invoice cost,” said Isaac.
Meanwhile, one shopper attributes the high price of groceries to a lack of competition in St Lucia. John Symphorien says he believes a monopoly in the supermarket business has caused either the closure or merger of smaller independent supermarkets.
“I believe that one company is controlling the cost because they alone running things in St Lucia and that is unfair,” said Symphorien while adding, “The Government should look into that thing just as they broke down Cable & Wireless because VAT is coming and with little jobs around the place, how are we supposed to buy food to eat?”
However, Minister for Commerce, Business Development, Investment and Consumer Affairs, Emma Hippolyte says that may not be the case as prices have been rising over the last few months, years even.
“Normally, we monitor the prices every quarter but as we get closer to the implementation of VAT, we will be monitoring prices every month.
“The Price Control Unit monitors specifically the prices of the basic shopping basket for a family of five and the total price for that shopping basket per week was EC$212.20 in March and as of May it is totaling to EC$220.54,” said Hippolyte.
While some items increase significantly such as garlic, others went down. Hippolyte says in most cases, shipping costs may be the contributing factor to rising prices on the shelves, however, according to the Minister, St Lucia like any other Caribbean island is facing the effects of global crisis.
She says VAT will not be a decider of how prices fluctuate but rather, Hippolyte believes the deciding factors will always be freight, insurance and customs charges on goods entering the country.
“One of the problems we have as a region is shipping—as we dealt with monitoring the price of cement, gas, oil and so on, one of the areas that is a problem with Caricom is the availability of shipping. It is one that is before Caricom to address but St Lucia on its own cannot take care of that problem. It does have an impact on the cost of goods landed here,” she said.
Hippolyte further explained that her Ministry has also advised businesses through the Chamber of Commerce to liquidate their stock prior to VAT so that there can be a smooth transition when VAT is implemented in September.
While some people believe that stores are maximizing their profits before the implementation of VAT, the Minister reassures the public that through Price Control, items on the shelves will be monitored for increase drastic increases that are not in accordance with the recommended price list.
Commerce Minister Emma Hippolyte says prices are being monitored.
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Prices? Doh worry, Lucians are good at hardship right? Let’s see if these prices affect the volumes of persons jumping in carnival costumes this year or whether it affects the turn out at the many, many, many daily and weekend fetes that have become part of de colchure. We get what we look for and we get what we deserve, and neither I, any other customer, this reporter or even Mary Isaac herself expects her to really be able to do anything. Positions with no power.
Very smart to raise prices before the arrival of VAT, I doubt prices will decrease after September. When prices go up they tend to stay that way, like pure viagra.
Ahh a diamond in the ruff John Symphorien Pal you just now see the monopolistic thiefery been payed out for years. Well better late than never St Lucians seems to be bawling about hard times lately and many have tongue lash the goverment on VAT HOW IS IT FOR MANY YEARS THEY HAVE NEVER FIND IT IN THERE SELF CONSCIOUS, SELF RIGHTEOUS, PATRIOTIC FIST PUMPING DEMEANOR, TO ADDRESS THE ISSUE OF GROCERY MANIPULATION IN ST LUCIA ? There is competition in telecommunication,cable, financial institutions, WHY NOT GROCERIES. The CRIMNALITY of it is worth a Parliamentarian Review but those “COWARDS” will never chop off the hand that butter their bread. Lucians afraid to speak so I will; Guilty
Yes Emma, during the campaign St.Lucia was’nt facing the global crisis under the UWP but only now under the SLP St.Lucia is facing a global crisis. Bitter Days are here Emma.
Better Days are coming!!!
don’t worry be happy.
I miss UWP even though I voted labour.
If I had to vote again … UWP all the way
Tell me something, the SLP while in opposition said St.Jude Hospital should have opened 2yrs. ago, they got St.Judes Hospital almost complete & it’s not opened yet. Tom Chew is watching en Rouge en chew nous.
We must realize to every action there is a reaction….we voted those EDUCATED FOOLS in office on the premise that ” better days are coming,” and there is no such thing as a world crisis. Now that reality sets in they are trying to invent every imaginable excuses…..The sadest part is there are so many gullible St Lucian who bought this crap during the election, that it’s no longer funny. Either they don’t keep up with global events, destitute, gullible or still enslave to those lying politicians. Guess what, deal with the ignorant decision you made, and you all get what you bargain for.
Excuse me? No such thing as a world crisis? Chris, what planet are you from. Have you been watching the NEWS? Where all the news channels are telling you that the world is plunging down into a global economic mess?
The European Union are going through a nightmare of much ridicule with their once supposedly ALMIGHTY EURO. Greece is already hit hard, now Spain is asking for a huge bailout because the country LITERALLY have NO MONEY to employ its citizens!
German Chancellor Merkel is in limbo trying to figure out how to come about with the EURO. Over here in the states–The same old song JOBS!OBAMA is strugling to fix the MESSED up US Economy! Gas & Food prices Alltime high!
Half de tings we buying can grow outside our kitchen window…..stlucia Nice
I am a St.Lucian living abroad and recently visited home. I cannot understand how the supermarkets can justify selling a box of Tropicana juice for over EC$10. The most I have paid for that same drink is US$1.50. That comes to about EC$4.00 so why the over 100% profit? My family is lucky to have me helping in that dept. but what about the average Lucian barely making it day by day. A can of salt is not even a dollar here; how much is a pound home? This is a disservice to the citizens. It has to stop. There is much power in unity. Lucian’s must UNITE and leave all their stuff on the shelves and then we will see who has the power. Stop settling my people. STAND up and demand better.
The minister does not believe the monopoly that Super J has have nothing to do with the high prices we have in the island. Wow that was beautiful, disappointing as espected. I still have not heard how are we not going to suffer from double taxation when VAT comes around for the first couple of months and after all the goods are sold and new stock are in place who will monitor the so call drop in prices we should expect. When prices go up in St. Lucia they dont go down.
I think the explanations given and solutions suggested by the people we pay to administer our affairs are just ridiculous. First off, is there nothing that the authorities can do to stop this blatant thievery by the monopoly supermarket? The only suggestion our Director of Consumer Affairs have is for us to “eat mangoes instead of apples” what do we do when mango is out of season? On the matter of the double taxation that we will face when VAT comes in September Ms. Hippolyte can only ask merchants to liquidate stock before VAT.
We have to get real in this country, we cannot have a ministry of consumer affairs who can only assure us a $220.54 basket of goods of flour, sugar and chicken…
Why is there a monopoly to begin with ?? Why can’t this monopoly be broken up ?? “HE” has made his wealth off the backs of poor St Lucian’s enough already ONE HUNDREAD TIMES OVER. I start my research already, I am so curious. I always tap the elders they know so much more, NO NEED TO READ A BOOK the family tree is vast and I’m uncovering so much IT’S PATHETIC.
When prices go up they tend to stay that way, get used to it, Kenny is just trying to make St. Lucians shed some pounds just like he has. It’s all good, more expensive the better for the society, while we are at it why not put the VAT at 20%, maybe even 25%.
We need competition in the supermarket sector! The minister should know better than to expect those with a monopoly on a commodity such as food to not take full advantage, especially with the population we have! Open the floodgates to new food importers and supermarkets, and whole salers……..and the consumer will be smiling as they beg us to come buy their products at prices alot more reasonable than the present…..Better days?
Tom Chou you will be missed
This is ridiculous! The minister says they will monitor the prices? If now the prices are sky high, how then can they monitor the prices later to help us? In what way are they going to help or what is the solution after they have monitored the prices? the consumer director says they can only monitor and control the price control items, that means the supermarket has leeway to create a hike in the price of foods that are no found in the controlled basket. this is unfair because the supermarkets will; one: increase prices that are not in the control basket to make up for reduced prices in the controlled basket and VAT exempted basket. Two: supermarket are maximizing their profits now.
so that they won’t be at a lost when VAt comes here. The authorities know this and are allowing these businesses who have ripped off st lucians for years to get away with it. I mean come on, you are just going to monitor? while prices are going really high. A tin of corn beef is 10 dollars??? come on!!!!
Salut St.Licien
All the VAT crap and soaring ky high prices……Thats what y’all get for voting in the RED!
NOW Look who’s in the RED!!!
Long gone were our YELLOW banana bright and golden days…..
Lucia becoming filled with stripes like Jamaican RED STRIPES!!!! HA! Deya mess up de conomie now!
Miss you Daddy Compton!
Remember if the Price of food Gose up then the Price of WAGES MUST AND HAVE TO GO UP, YOU CAN NOT HAVE SOME ONE WORKING FOR THREE DOLLARS AND HOUR,
St. Lucia has learned price gouging by the ultimate money minded country called Canada. They have discovered that people are like sheep, they will pay whatever is demanded and pay inhumane taxation in the name of patriotism. So you will suffer in a stupid pride.