West African Countries Cut Tax to Combat Increasing Food Price

Aug 08, 2012 03:17 AM EDT | By Sharon Robinson

  • print
millet
The price of millet has risen drastically in the last month, in Niger. (Photo : wikipedia.org)

In an effort to mitigate the effects of food inflation on the people, Niger, the Ivory Coast and Mali have either lowered or cut taxes completely. Several basic imported foods will now cost a lot less than they did before. These countries faced civilian unrest in 2008 due to rise in food prices.

Like Us on Facebook

Several countries fear that rising food prices will lead to riots and protests, as it did five years ago. But, the FAO believes that adequate rice supply may appease people.

"I know we are in a period of rising prices, especially when it comes to basic foods like sugar. But I call on businesses to respect promises that they made with the ministry of trade," Niger's President Mahamadou Issoufou, said in a speech late on Thursday, referring to meetings between the government and traders last month, according to Reuters.

Niger has removed all taxes on imported cereals, but compared to their prices this time last year, it is 43 percent higher. A quintal of millet now costs 30,000 CFA Francs, or $55.61. Last month, it was CFA 25,000, or $47.25.

The neighbouring Mali, which is under civil strife, has already brought down tax on imported rice to around 2.5 percent, including value added tax. The import tariff on sugar is 2.5 percent, as well.

"This year I was surprised to buy a kilogram of sugar even cheaper than the price fixed by the authorities," said Moussa Doumbia, a stonemason, to Reuters. "Long may it continue."

 The drought in the mid-western farm belt in the US, and in the Black Sea region has the UN's Food and Agriculture Organization worried. But, it does not believe that the world will see another food crisis.

Russia's heat wave has analysts speculating about a possible ban on the export of grains. The US corn and wheat prices, meanwhile, rose by 50 percent in six weeks. Speculation is rife that a bushel of corn will soon be around $10.

© 2015 Food World News. All rights reserved. Do not reproduce without permission.
Get the Most Popular Food Stories in a Weekly Newsletter
TrendingOn The Web
Food Biz
Jimmy Carr Launches New Stronger British Latte at Starbucks

Starbucks Race Together Campaign Tanks: Starbucks Baristas To Keep Race Out Of Coffee Cups

In a bold move, last week the coffee giant released a new campaign, Starbucks’ Race Together, in which baristas in United States venues were invited to start a conversation with clients about race in America – but it’s been a marketing disaster all the way through.

California Wines

California Wines: 31 Brands Of Cheap California Wines Loaded With Very High Levels of Toxic Arsenic?

California wines- Are you addicted to California wines? Wait until you read this! Some cheap California wines were found positive for inorganic arsenic that is believed to be lethal beyond allowable limits.

Dairy Queen Payment Systems Breached By Hackers

Dairy Queen Vanilla Ice Cream: FREE Cone Day On Dairy Queen’s 75th Anniversary!

The Minnesota-based company is turning 75 today, and they’re celebrating along with fans with a Free Cone Day, as Dairy Queen’s vanilla ice cream makes a full appearance all over the country, as the company also teams up with a big charity for the occasion.

Food Tech
Chef

The Top 10 Secret Weapon Ingredients from the Star Chefs

Just today, February 25, 2015, Yahoo! Food posts the secret weapon ingredients used by Star Chefs to achieve the most palatable dishes at home or in a restaurant. The said website revealed the top 10 magical ingredients that can turn home-cooked meals into top class restaurant tastes.

Burgeoning Craft Beer Industry Creates Niche Market For Limited Release Beers

Next Glass App: The App That Chooses Wine And Beer You’ll Love!

For those who love to have a nice glass of wine or beer during the weekends - which is just about everyone or almost -, there's a new way to keep the guessing out of the way you choose what to drink: the Next Glass app chooses drinks according to what you love!

A national survey done by the North Carolina State University and the University of Minnesota representatives suggests that most U.S. consumers are ready to accept genetically modified and nanotech products if it is enhanced with nutrition and are safe.

U.S. Consumers, Ready To Accept Genetically Modified, Nanotech Products If It Is Healthy And Safe, New Survey Reveals

A national survey done by the North Carolina State University and the University of Minnesota representatives suggests that most U.S. consumers are ready to accept genetically modified and nanotech products if it is enhanced with nutrition and are safe.

Real Time Analytics