Ministers Persaud, Singh explain implications of price increases

Georgetown, GINA, December 6, 2007

Price increases for commodities on the local market have been influenced by global developments which have caused much concern among Governments and people of many countries.
            Minister of Finance Dr. Ashni Singh and Minister of Agriculture during ‘Close Up’ on the National Communications Network (NCN) explained the issue when they highlighted several of the developments which contributed to the situation.
            “The fact of the matter is that globally there has been a very striking increase in a number of commodity prices. There has been a dramatic increase in fuel prices, in fact if you were to compare the prices at which we were acquiring fuel products at the start of this year relative to the price at which we are acquiring fuel products now, the rate of increase is stark and ranges in excess of 30 percent simply from January to the end of last month,” Minister Singh stated.
            Recognising that the problem is affecting other countries in the Caribbean Community (CARICOM) Region, Heads of Government will be convening tomorrow at the Guyana International Conference Centre, Liliendaal, to discuss the issue.
            Minister Persaud pointed out that President Bharrat Jagdeo offered to host the Summit since the country can offer some solutions.
            “We made an offer in terms of using Guyana as a productive base, a food production base for many of the territories and that offer is still on the table and we have advanced the discussions in many regard in that area. But also while it has global concerns, regional concerns and even for instance the food that we import it has affected our people it has also provided opportunities too for our farmers and our producers in this regard.”
            The Minister stressed the need for persons to understand the issue and to appreciate the global/regional implications and not to allow individuals to misrepresent the situation and attribute other reasons for price increases because Guyana is not the only country experiencing this.
            “In Guyana we are lucky that we enjoy food security. We are a net exporter of food…our situation is far less in terms of its implications for people, say in many of the other territories where they have huge food bills. In fact, the region as a whole has in excess US$3 billion per year and imagine what is that having on small economies which do not produce food and cannot help themselves,” Minister Persaud said.
            Minister Singh in highlighting the price increase situation in relation to the commodities which have attracted the increases pointed out that there are a number of other commodities which were impacted.
            “On the world market we have seen commodities like wheat and maize have their prices move sometimes in excess of 50, 60 percent over the last 12 months and we have seen also inventories of stocks of these commodities at their lowest level in some cases at their lowest levels in over 30 years.”
            Meanwhile, to mitigate the impacts of the price increases on consumers, Government has implemented several initiatives including the recent reduction on excise and consumption taxes.

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