Dear Editor,
In your (SN) September 21 issue, the Bureau of Statistics said price increase was 14% and general living costs was 5.4% for the preceding seven months of 2021. We were told by the government bureau, in December, that not much had changed in terms of prices and inflation since September. A visit to the market, last weekend, would dispute that claim and the given inflation numbers.
Prices for basic foods, local produce of Guyana in particular, have been going through the roof. The poor can’t afford to feed themselves. A month’s salary can’t purchase a week’s basic goods. Yet, government says inflation is only 5.6% now. The United Nations says food inflation at end of 2021 was 28% relative to 2020. Which agency in Guyana is measuring inflation and how did it come up with such low numbers? Are the numbers fudged? Prices in Guyana have risen steeply since May with the flooding and food transport; fuel has gone up by over 50%. For some products, especially food items, today’s price are 200% to 300% from what they were in May 2021. Prices of some items are 400% or 500% of what they were in May. The prices, after May 2021, were higher than they were in July 2020. And money is not really circulating except for the small amount of grants handed out by government and that was not done transparently. So many people have been without a job from 2016 to now that they can’t afford to eat. The unemployment rate is very high. As an illustration of rising prices, the price for staples, such as rice and flour, have gone up by 25% from last May. There are slightly varying prices for goods at different markets. Brown rice is $2000 for a ten pound bag. Flour is $480 for two kg bag. Split peas has gone up 40% to $150. Sugar is very scarce with price up by 50% over the last year from $200 to $300 a kilo. I am told we are importing sugar. In America, polished white cane sugar is the equivalent of G$220 a kilo; brown sugar is cheaper. Imagine cane sugar is cheaper in America and Guyana is importing sugar thanks to the genius leadership of GuySuCo management. Jagan must be turning in his grave looking down at what his successors have done to the sugar workers and Guysuco. Sugar workers have never paid so high prices for sugar, not even during the PNC days.
For some more illustration, the price of yam is $400, more than double the price a year ago. My wife tells me that yam in America is less than G$100 a pound. Plantain, cassava, sweet potatoes are G$260 to $300 a pound in Guyana, up by $100 from last May. They are all cheaper in America. Imported potato is $150, a steep increase from $100 a month ago, but cheaper than Guyanese ground provisions. Onions are $100 (up from $80 a month ago). Shallot is $1500 a bundle up by 1500% from last May when it was just $100. Imported shallot is cheaper and American shallot of three bundles for G$200. Poi bhajjie (or callaloo) was $100 a bundle last May. It is now $300 for the same size bundle, costlier than in New York. Bora went up to $500 from $100 from a month ago for the same bundle of about 12 ounces. Bora in America is cheaper. Ochro can’t be found and one is lucky to get it at $500 a pound, five times the price from last May. In NY, ochro is G$200 a pound. Chicken is $400 a pound, much more expensive than USA. Lime is $100 a piece when it was five limes for the same amount of money a month ago. Lime is virtually being given away free in New York. Broccoli is $1500 a pound, up 300% from a year ago. Tomatoes is $800 a pound but just US $1 a pound in New York. Local grown Balanjay is three large ones for $1000. A Guyanese company is importing balanjay and tomatoes from America and selling them cheaper than that produced in Guyana. A dry coconut is $150 up from $50. An American dry coconut is less than G$200. It won’t be surprising if imported rice is sold cheaper than local rice. Rice farmers need assistance that must be shared equitably and with transparency.
Fish is unavailable. Shrimp too, is not available in the market. In fact, fish and shrimps are being imported into Guyana. Foreign sea food is cheaper. People can’t afford to eat seafood. Chicken and other meat are cheaper for the first time in the country’s history. Clearly, foreign products or imports are cheaper. As predicted, agriculture has virtually collapsed in Guyana over the last several months, brought about by the floods, neglect, corruption, bad leadership, and other factors. The injected free money, through various grants and shortage of goods, has fueled inflation while discouraging the productive sector from manufacturing and production. Too much money is chasing too few goods resulting in inflation. Govern-ment must encourage local production to bring down prices. Official world food price has gone up by 28%. But Guyana government says prices have gone up by 5.6%. A visit at the markets reveal prices have gone by an average of 225 percent since last May for a set of goods for a family of five. It seems the real, true inflation figure may be higher than 100% rather than 5.6 percent the government says. And salary is not keeping pace with inflation. A minimum income of $60,000 a month can’t upkeep an average sized family for two weeks with the rate of increase of food prices.
Sincerely,
Vishnu Bandhu
URP