Sunny Foods Executive rings up the costs of the Grocery Business

By Dana Malcolm

Staff Writer

#TurksandCaicos, December 1, 2022 – Another TCI based grocer is speaking out on the high costs of goods in stores even as an update on the extension of the tax exemption on Bread Basket items is confirmed.  Sanjay ‘Sunny’ Gopaldas of Sunny Foods spoke to Drexwell Seymour on RTC FM during Financially Speaking to explain why residents are feeling such a big pinch in terms of grocery prices

A 22 year food industry veteran with six stores across the TCI, Sunny was questioned on whether grocery stores were passing on the savings, a question many residents may be asking themselves given the recent spikes in food especially poultry and lettuce.

“We are passing on the duty exemptions and the CPF from the government but the problem we are facing is the increases from our vendors- from the supply chain.” he explained, saying that many of the increases were simply out of their control.

“For example- even I saw it on Facebook where people were complaining about the Romaine heart lettuce. There was a viral fungal infection in California and the demand— is much higher than regular and everybody had to pay more.”

Unfortunately for lettuce lovers that price may take months to go back to normal, the grocer said.

Gopaldas explained that because of decimated labour forces from Covid-19 stores like Amazon, Winn Dixie and other major retailers were woefully short on manpower, decreasing supply as demand increases pushing up prices even more. And just like consumers, stores too are taking a major hit.

‘Our [profit] margins are actually down because of the competition that we are facing, there are a lot of mom and pop stores– it is a good thing because it keeps everybody on their toes– at the same time the cost of doing business is not the same. Electricity is up and commercial businesses are still paying high prices and we have the same labour crisis on this island as well.”

He listed freight raises as a major expense, up to 45 percent higher than before the pandemic and higher NIB costs as factors driving up operating costs.

“It just adds up” he said “and you have no choice but to pass on the freight costs and add on to your price. It’s part of the cost.”

Magnetic Media obtained a statement from Graceway Supermarkets, which operates five stores including one in Grand Turk and it echoed the same sentiment. Citing high costs around the globe as behind the rocketing prices on grocery items for locals.

Aside from the extension of the tax exemption associated with the Price Inflation Stimulus – duty free breadbasket items and duty exemption for returning residents on purchases abroad – the government had promised to re-assess the $15 million dollar Food and Fuel Tax break – a discount on Customs Processing Fee and fuel tax – if it was needed.