Trade Minister Warns Wholesalers Against Price Inflation, Threatens Sanctions

By Claude Kenfack

The Minister of Trade, Luc Magloire Mbarga Atangana, has issued a stern warning to wholesalers of essential commodities to desist from unwarranted price inflation, emphasizing strict adherence to existing legal provisions.

He was addressing wholesalers dealing in key products, including fish, poultry, beef, vegetable oil, sugar, and rice, during a meeting in Yaounde.

They met with them Wednesday, November 20, 2024, at the boardroom of the Ministry of Trade.

The Minister highlighted the government’s dual commitment to safeguarding consumer rights, while ensuring fair profit margins for businesses.

Stressing the importance of compliance, he cautioned that failure to respect the homologated prices would attract severe sanctions.

“We understand that you have to make profits while doing business. That is why we agreed on fixed prices that consider your profit margins while ensuring consumers get a fair bargain. Unfortunately, some of you have disregarded these agreements, setting your own prices to maximize profits. I urge you to respect the agreed prices or face sanctions,” Minister Luc Magloire declared.

Wholesalers Cite Market Challenges

On their part, wholesalers expressed concerns about prevailing market conditions.

They argued that global and domestic economic pressures have significantly altered cost structures, making it challenging to operate within the stipulated pricing framework.

“It is true that we agreed on the prices of certain products. However, global economic inflation has caused the market reality to change. We purchase far higher than we did when we settled on those homologated prices. We cannot be doing business at a loss,” Ernest Antangana, a wholesaler, noted.

Both parties acknowledged the necessity of revising the agreed prices to reflect current market realities.

However, the Minister urged wholesalers to maintain the existing prices until they finalize a new agreement.

Rising Prices Affect Households

The ongoing price inflation has profoundly diminished consumers’ purchasing power.

A recent report from the National Institute of Statistics, published on October 23, 2024, revealed a 0.8 percent rise in the cost of essential goods in September 2024 compared to the previous month.

This means that prices for 8 out of every 10 products have increased, further straining household budgets.

The report underscored the collateral damage of inflation, with consumers having to spend significantly more to meet their basic needs.

Government’s Assurance

Despite these challenges, the trade minister assured Cameroonians of the availability of essential commodities throughout the end-of-year festive season.

He reiterated the government’s commitment to enforcing price regulations, calling on economic operators to comply with homologated prices or face consequences.

“The government remains committed to ensuring that basic commodities are affordable and accessible to all Cameroonians,” Minister Luc Magloire affirmed.

The meeting ended with a renewed pledge to revisit pricing agreements in a manner that balances the interests of both businesses and consumers.