Frozen chips could soon rise in price following hefty import duties imposed on the world’s biggest suppliers. Photo: snappyslug / Flickr
Frozen chips price hike incoming thanks to hefty import duties
SA has hit Germany, the Netherlands and Belgium with some high import duties meaning frozen chips could soon increase in price.
Frozen chips could soon rise in price following hefty import duties imposed on the world’s biggest suppliers. Photo: snappyslug / Flickr
Your favourite frozen chips, fries and slap chips may soon rise in price following a steep increase in import duties.
World’s biggest suppliers slapped with hefty import duties
Recently the South African International Trade Administration Commission threw some heft import duties on the world’s biggest supplies. The tariff hikes are as follows:
- Germany will be hit with a 181% tariff hike;
- The Netherlands will be hit with a 104% tariff hike and;
- Belgium will be hit with a 23% tariff hike.
These imposed import duties could mean that Germany, the Netherlands and Belgium could find other markets to sell their frozen chips. Speaking to Cape Talk, agricultural economist at the National Agricultural Marketing Council Thabile Nkunjana explained that these import duties are aimed at protecting the domestic market.
How long will this take to impact consumers?
“The main issue around this has been the dumping of frozen potatoes that are relatively cheaper to what local producers are supplying, and it has a negative effect on domestic producers because it means they cannot have fair competition,” said Nkunjana.
Nkunjana says the time period for the tariff duties to be passed on to consumers can take a few months. Nkunjana explained that there is a procedure that needs to be followed.
Consumer Price Inflation continues its alarming rise in SA
Meanwhile, it was reported that Consumer Price Inflation has increased yet again according to figures released by Stats SA. SABC News reports that inflation increased to 7.8% in July compared to 7.4% in June.
The increase in inflation, to 7.8% last month, indicates a 13-year high. According to Business Tech, this is the highest inflation rate since May 2009 where Consumer Price Inflation (CPI) reached 8%.
CPI keeps track of the change in consumer prices over time using a representative basket of goods the average consumer would buy. Increases in food prices, specifically bread and cereals, can be attributed to the Ukrainian war. Further, the war has greatly impacted fuel prices. Read the full story here.
