By Jenifer James
In an exclusive interview with King News on Thursday, Robert Pitia, Chairperson of Central Equatoria State Chamber of Commerce, shed light on the intricate factors driving up food prices. He emphasized that both external and internal elements are at play, with food production being a key concern. Pitia pointed out that every step of the process, from labor and processing to transportation, relies heavily on fuel, which has become a major cost driver
“Any increase in production costs translates directly into higher food prices,” he explained. The price of fuel is particularly significant since the region does not produce its own. When fuel prices rise, so do transportation costs, which ultimately add to the price of food.
Pitia noted that the state struggles with a lack of local production. He emphasized the need for reform in taxation policies. “Our taxation system is complicated and often duplicative,” he stated.
According to Pitia, national, state, and local governments all impose their own taxes, including business profit taxes and rental value taxes. This redundancy can burden traders.
Pitia called for the harmonization of these taxes so that businesses can better understand their obligations and manage their costs.
“If we streamline who collects what, we can alleviate some of the financial pressure on traders,” he said, suggesting that local governments should not impose taxes already levied by the state or national governments. This approach could help reduce operational burdens and, consequently, food prices.
Pitia also touched on the instability of hard currency, noting that fluctuations in the dollar can disrupt the economy. “If the dollar remains unstable, so will prices,” he remarked. However, he expressed hope that once hard currency stabilizes over six months, the overall economic situation could improve, leading to more predictable food prices.
In August, the national minister of trade and industry promised to inspect markets for the reduction of prices of food in the markets.