Price drops due to subsidy

The National Business

By PETER ESILA
STOP & SHOP has acknowledged the Government for subsiding freight costs in an agreement with Bismark Shipping while noting the drop in the price of potatoes sold in its shops.
Potatoes from the Highlands are now being sold at K4.95 per kilogramme down from K6.95 per kg.
City Pharmacy Ltd managing director Mahesh Patel said the Covid-19 pandemic was impacting global food system, and disrupting the regional agricultural value chain.
Patel said there was an increase in sales over the weekend but the real impact would be felt over time.
In terms of potato quantity, Patel said: “We generally get two full container loads each week.
“Its early days but the idea is to build the whole supply chain to get consistency in supply, quality and transport and add the price drop to increase demand.”
Patel said SNS sourced its potato supply from all parts of the Highlands with the collection point in Mt Hagen, Western Highlands.
The Government, last month, signed a K3 million agreement to provide relief and revitalise fresh produce and vegetable trade in the Highlands, Madang and Morobe.
National Planning and Monitoring Minister Sam Basil announced the deal following the signing of a service level agreement by department secretary Koney Samuel and Lae-based shipping service provider Bismark Maritime Ltd.
“This is a state of emergency (SOE) intervention as part of the Marape-Steven Government’s economic stimulus package, to ensure cash income generation at the village producers level, among buying and transport agents, and to supply fresh produce and vegetables from the easily accessible Lae port from the Highlands, Madang and Morobe initially, to the National Capital District and then later to other main ports depending on demand,” Basil said during the signing.
“I am advised that at peak, up to 50, 20-foot containers of fresh produce and vegetables were shipped from the Lae port to Port Moresby.
“This has hit rock bottom due to the Covid-19 SOE restrictions with multiple, compounding impacts on the villagers who grow and sell the local fresh produce and vegetables, the buying and transporting agents, shipping service providers through to the supermarkets.”

3 comments

  • It will be a lot cheaper and less work involved if there is a good road link from the highlands to Port Moresby to transport goods to Port Moresby and vice versa. In fact, all mainland provinces should be connected by road. PNG governments have failed their citizens since independence of this vital need for mere excuses they have every time now and then. I think if we can address corruption in its various forms, we can have that money to realize our developmental aspirations. Thank you.

  • Weldone PMJM and Sam Basil for the brilliant initiative. This assistance is very helpful as it will strengthen local capacity while tightening up food security measures. A great motivation for the majority of the rural farmers. A relief for the struggling local industries.

  • This is a very good initiative, I hope it continues even after the SOE period.
    I for one don’t like to easily commend or praise especially the politicians because we all know that PNG would be even more developed now then what it is today if only they managed our economy well and in transparency all this year’s. However, one could only say that this is a step in the right direction.
    Keep it up!

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