Edo State government says it is extremely difficult to break the monopoly of unions that profiteer from hike cost of food items across markets in the State.
Mr Crusoe Osagie, the Special Adviser to Governor Godwin Obaseki on Media Projects made the remarks on a local Radio station interview at the Weekend in Benin City, Edo State Capital
He stated that the monopoly is striving because there is short supply of food at the markets, thereby giving the Unions to regulate prices of foodstuffs, thereby reaping off retailers and consumers.
Responding to the reasons why market Unions fix prices of foodstuffs, the Governor’s Aide said, the inability of government balance the rights of those people in association compare it with the right of people who want to buy things at competitive prices, makes it very difficult for government to enforce price control in a free market economy.
Mr Osagie however assured that the monopoly created by market unions will ease soon based on the steps the government has taken to encourage production and expand markets, thereby making food supply to be in excess across markets in the State.
According to him, “As we are defending the rights of people who are complaining that the price of foodstuffs have increased. But when we (Government) wants to deal with the various Unions, they will confront you (Government) not to interfere into their business because the market is a free market.
“So, it is a very delicate balance. We acknowledge.the suffering or our people. We acknowledge that these market people are making things difficult for the people”, he said.
The Special Adviser lamented that “These unions menace is indeed a serious one. We have being talking about it. Union issue is very technical to handle. Why? We are in a free market society where people can divide how they run their markets as they please.
He said, “Though what they are doing is bad. We have heard complaints about how they fix prices of commodities arbitrarily. On the back of that, there is what is called freedom of association.
“People can decide to decide to be in a Union and can decide not to join Unions. People can also decide at a particular location.
“So, due to the balancing of the rights of those people to associate versus the right of people who want to buy things at competitive prices, it becomes very difficult for government to implement.
“But what is important is if we (people and the government) can flood the market with products. If cassava, plantains and tomatoes are in excess at all the markets, the traders can sell their goods at subsidized prices.
“What the government is now trying to do now is to encourage production of more food items and encourage more people to get into the business of selling these food items. When that happens, market forces will regulate the prices of those food products.
“We are trying to use a strategic way to solve the problem. That is way is to drive production and increase supply of food items to the various markets.
“And that will force the Unions to review their prices. What the Unions are now riding on today is, there is short supply of food items in the market. So, when you increase food supply to markets, that would help us to break the monopoly of these people”, Mr Osagie said.
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