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NRM CAUCUS TO DISCUSS SKYROCKETING COMMODITY PRICES

By Our Reporter

KAMPALA: President Museveni has said the ruling NRM party caucus is set to meet and discuss the skyrocketing commodity prices in the country.

“As we celebrate Easter, I know the issue of high prices for commodities, is disturbing our people, I will meet with Caucus next week and we discuss then I will address you on the matter,” Museveni said in his Easter message.

“I know they are disturbing our people but I will first speak with the caucus and then discuss with the rest of the country.”

The development comes a few days after the Ministry of Finance Permanent Secretary; Ramathan Ggoobi said government will not provide subsidies, tax or price control reliefs as had been suggested by man as a way of cushioning Ugandans over the skyrocketing commodity prices.

“We are not going to subsidise anything. Subsidies don’t work and that is bad economics. Those who have done it have faced problems. Subsidies tend to take money to wrong people and not those you intend. Mafia can organize and take all money for subsidies,”Ggoobi said.

He explained that controlling prices can lead to a number of unwanted practices which might have dire consequences for the economy.

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“We aren’t going to control prices. That is bad economics. When you control prices, you create so many unintended consequences. We have to be careful with the medicine we give. You can’t treat cancer with paracetamol. We have to undergo process of treating cancer.”

A number of commodities have seen their prices increase at a terrific speed , a situation which has mainly been attributed to the Russia-Ukraine war that saw fuel and gas prices go up.
This has since triggered the rise in prices of many other commodities.

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