Local consumers are suffering the effects of government protection to producers. Sugar prices are at a high, reflecting a government decision earlier this year to limit imports to those made by sugar producers, versus allowing industrial users and wholesalers to import to fill their own and consumer needs. A recent Ministry of Industry and Commerce resolution that sets new prices to sugar, garlic, onions and beans also has met with opposition. The pound of white sugar now sells for RD$4.30 as per the Ministry of Industry and Commerce resolution. The Ministry has resurrected the Price Control Department and ironically set new high prices for the basic food products, even without these being requested by the producers. The mechanism is rejected as obsolete and harmful to consumers, say the business organizations Unión Nacional de Empresarios, Federación Dominicana de Comerciales and Asociación de Almacenistas Importadores. They say it will only lead to speculation, extortion by government inspectors and higher prices. They advocate the government allow free imports to foster competition that has been shown to be the best guarantee of lower prices.
