GAWU warns of impending food price hikes due to rising transport fares

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The General Agricultural Workers Union (GAWU) has warned of an imminent rise in food prices.

This warning follows the Concerned Drivers Association of Ghana’s announcement of a 15% increase in transport fares, effective July 22, due to surging fuel prices and the cost of essential items like spare parts.

In an interview with Citi Business News, GAWU’s General Secretary, Edward Kareweh, remarked that the fare hike’s timing is unfortunate, as it coincides with the rainy season, further deteriorating rural roads.

He explained that this will increase costs for farmers transporting produce from rural areas to urban centers.

Kareweh emphasized that the ripple effects of higher transport fares on goods and services could lead to increased food prices and food inflation.

“Some transporters may call off or abandon that type of business because if it becomes too expensive for them to operate, they may withdraw their transport there.

“When they do that, there will now be a shortfall in the transport and the few that are there will now also raise prices to be able to keep up. There is no specific formula, what is clear is that there will be further increases in food prices.

“As to how much that will happen, what we can say categorically is that it will be more than the proportionate increase. If the increase is 15% in transport, you should expect that food prices will go [up] generally more than,” he said.