Increased food production must be prioritised to tackle rising cost of food - PM tells Lethem residents

Georgetown, GINA, April 21, 2008.

Residents of Lethem and surrounding communities in Region Nine have been urged to prioritise increased food production to support self-sufficiency in their communities in view of the current rising food prices affecting people worldwide.
During a consultation on the current situation with Prime Minister Samuel Hinds at the Lethem Primary School on April 19, residents were told that increased income and subsidies by Government will not address the rising food cost if there remains a shortage of items and greater demand.
Residents were reminded that the world population is continuously growing and so is the demand for food and other items while consumers’ eating habits have changed as a result of increased income and accumulation of wealth by more individuals.
While these and other factors continue to influence food prices, residents are being reminded of the potential that exists in their communities to grow more food. This will ensure adequate supplies to meet local demand and can increase export earnings.
Other issues contributing to the price increases were highlighted such as global increase in demand for petroleum products, especially by developed nations such as China and India, climate change that has affected agricultural production in several countries and the use of food items such as corn and cane to produce ethanol.
It was pointed out that there are tremendous opportunities for Region Nine residents to increase production using the experience of their neighbours across the border. Reference was made to the successes in Brazil with soya beans, rice and corn particularly as it relates to value-added production and since it is possible for these crops to be cultivated in Region Nine.
Additionally, residents were told that they may want to pursue agricultural diversification and look at other means of income such as livestock rearing taking into account the increase in demand for meat. They were also told to consider a change in lifestyle which could reduce individual expenditure since it is projected that the price increases may continue over the next two years.
They were further informed of some of the responses and interventions by Government to help Guyanese deal with the situation such as the removal of Value Added Tax (VAT) from a large number of items and monitoring of mark-up by businesses countrywide.
The Excise Tax on diesel was recently reduced to zero percent. Kerosene and cooking gas were zero-rated to help the productive sectors while there has been a reduction on gasoline. An additional intervention has been made in the local aviation sector to ensure that the price of travel is not increased.
Prime Minister Hinds noted that while there have been calls for Government to institute price controls, Guyanese must be reminded that this system did not work in the 1970s and it is likely that it would not at this time.
Reference was made to the sale of items on the ‘black market’ and reduced production which can result from the implementation of price control particularly when the current situation is a global problem.
Residents expressed interest and willingness to get involved in increased food production and spoke about several issues that may present a challenge as they embark on this effort, including the need for more resources and equipment.
Suggestions were made for the provision of a vehicle for the Region Nine agricultural department, soil testing, more extension officers and technical and marketing advice. They were told that officials from the Ministry of Agriculture are expected to visit the Region shortly to provide such services.
Another issue raised was the need for assistance for farmers in outlying areas who are very productive, to transport produce to Lethem on a regular basis. The concept of an arranged market was recommended and Regional Chairman Clarindo Lucas said this system is being explored.

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