President Irfaan Ali on Monday said his government is continuing to pursue measures aimed at easing cost-of-living pressures, as global events continue to affect food prices and the cost of key commodities.
Speaking on the issue, Ali said rising living costs are not unique to Guyana, pointing to a series of international shocks since 2020 that have affected economies worldwide.
“Since 2020, a series of overlapping global shocks has driven up food and living costs worldwide,” the President said.
He pointed to the lingering effects of the COVID-19 pandemic, the ongoing Russia-Ukraine war, instability in the Middle East, climate-related disasters, currency depreciation and rising global demand.
According to Ali, the Russia-Ukraine conflict has affected commodities such as wheat, corn, sunflower oil and urea, while sanctions and trade restrictions have also contributed to disruptions. He noted too that droughts, floods and other extreme weather events have affected agricultural production and supply chains.
Against this backdrop, the President said Guyana has implemented several measures aimed at containing costs while increasing domestic agricultural production.
Among them, he highlighted government’s reversal of increases in drainage and irrigation charges and land rental fees, which he said is saving farmers approximately $1.4 billion annually.
Ali also pointed to the removal of Value Added Tax (VAT) on agricultural machinery, equipment, fertilisers, agrochemicals, pesticides and key inputs for the poultry industry.
The government, he added, removed the excise tax on fuel and restored zero-rated VAT on several basic food items, including flour, bread, oats, crackers, biscuits and cooking oil.
The President also cited significant spending on agricultural infrastructure, including $28.1 billion for drainage and irrigation, $5.7 billion for farm-to-market access roads and another $40.9 billion aimed at reducing farmers’ costs through critical drainage and irrigation infrastructure.
According to Ali, these investments are intended to lower production costs while improving agricultural output.
Government is also moving to establish farmers’ markets across the country, allowing producers to sell their goods more directly to consumers.
“We are now working with farmers to bring their produce directly to the market,” Ali said, explaining that the initiative is intended to address the difference between wholesale and retail prices in a structured manner.
He pointed to recent efforts through the Guyana Marketing Corporation, which he said resulted in chicken prices being reduced by almost half at markets, while egg prices were also substantially lowered.
Looking at longer-term interventions, Ali said government is pursuing investments intended to improve efficiency and further reduce production costs.
These include a planned fertiliser plant, the continued expansion of controlled-environment agriculture, including shade houses, greenhouses and hydroponics, and the opening up of 100,000 acres of new arable land.
The President said controlled-environment farming could produce up to 90 per cent more output.
Ali also disclosed that zero-interest, zero-collateral loans of up to $3 million are expected to become available in October through the Guyana Development Bank.
He said the bank will be capitalised with US$100 million, while Finance Minister Dr. Ashni Singh is expected to announce the official commencement date.
The President also pointed to investments in a gas bottling plant as another initiative expected to help reduce household costs.
Meanwhile, Ali said he has invited members of Parliament’s Foreign Relations Subcommittee and Economic Services Committee to separate meetings later this week to discuss government’s policy interventions.
“I believe in working and letting everyone understand what we are doing at the policy level,” the President said.
