While some sectors have not been significantly affected by the COVID-19 pandemic, others have been hard hit, according to the Private Sector Commission (PSC), which has recommended that government consider buying crops to support farmers and to distribute to citizens who may need food.
At a virtual news conference hosted by the organisation yesterday, Chairman of the PSC’s Trade and Investment Sub-Committee Ramesh Dookhoo said that sugar production has been affected by distancing restrictions put in place to safeguard against transmission of the disease, while there has been a fluctuation in demand for some crash crops.
Dookhoo, who was reporting from a sectoral analysis he undertook to determine the economic impact as a result of the pandemic, said social distancing affected the turnout of the workforce in the sugar industry and as a result the production was negatively affected. “The overall quality of the sugar cane deteriorated as well and factory costs also increased significantly,” he said.
And as it pertained to other crops, Dookhoo said that there was a fall in demand owing to people not having enough disposable income and he suggested a decline in food consumption. However, he said some cash crops have seen increases in demand, thus spurring higher prices in some cases.
It is against this background that the PSC is recommending that government could consider purchasing local crops to support farmers and to distribute to persons who don’t have money and need food.
With current COVID-19 restrictions due to expire on June 3, there have been rumours of their possible extension and the implementation of more severe measures, which the PSC doubted yesterday given current realities.
“If you are going to lock down there has to be some cushion and there is no wages to be created here. This society has 40% unemployment. So no, I do not believe there will be a lockdown. We held this press conference to demonstrate what a bad state the PSC is in. I don’t believe so and won’t support a lockdown given that there is no kind of solution for fueling the economy coming from the government,” Dookhoo said.
As it pertained to agro-processing, Dookhoo said that an increase in production is expected, providing that persons turn out back to work.
“Price gouging is reportedly affecting the industry – procurement of goods and food supplies – that is while there is a general concern of maintaining existing levels of activities due to logistics constraints, price constraints and concerns about movement. However, it was expressed that production has not yet been significantly affected and the industry continues to monitor the developments while being cautious,” he said.
“The sector which is so far largely unaffected because of the nature – food production which is an essential consumable goods. Main products may not go below the pre COVID-19 state while for the rest of the year, high production is expected. This can be achieved because there [is] sufficient raw materials in stock to last year. Supply chain disruption, delay in shipping directly from the suppliers was reported… As such, companies could run into supply issues in the next two months owing to supply chain disruption (stockpiling of raw materials) while non- essential products declined expenditure has increased,” he added.
The PSC is, therefore, recommending a more coordinated approach to response measures.
In the bauxite industry, it was reported that production has not been significantly affected. This is despite the fact that one company has had to lay off about 30 employees and continues to operate on a half-day basis.
In gold mining, Dookhoo added, activities have not been significantly affected though COVID-19 restrictions have been imposed on workers.
Fishing has also not been found to be affected by COVID-19 as it carries out regular operations and its export market remains unaffected.
Rice was also not reported to be affected in any significant manner due to it being a mechanised industry.
But Nicholas Boyer, of the Natural Hardware store and an executive of the PSC lamented that the hardware and retail sector has been negatively impacted, especially the restaurant businesses.
These businesses are estimated to be down by 40 to 50 per cent and the construction sector is also down by an average of 40 to 50 per cent.
PSC Chairman Gerry Gouveia spoke on the tourism sector, which he said has been “flat” since the pandemic was declared.
“Tourism has been flat. Every side of it has become completely flat. The closure of the airports, the scientific facts that social distancing was needed and all of that [have] seen all restaurants and hotels, the resorts, having had to close. It went from 100 miles to zero almost immediately. All our tourism attractions have come to a grinding halt. It would take time to be restarted. We have to flatten the curve first…,” he said.
