THE Government of Guyana has been vigilant in monitoring the effects of  rising food prices globally and as such, has partnered with sister CARICOM states to transform its economy into a major player in the development of food security in the region.
This is according to a report of a parliamentary committee on the Impact of Global food Price Increases.
The report highlighted that the global increase in food prices, which amounts to in excess of 80 percent over the past year-and–a-half, were caused mainly by hike in the prices of fossil fuels and production of bio-fuels, effects of climate change and the growing demand for food in large emerging economies.
Government established an Inter-Ministerial Committee on Food Prices that were tasked with the monitoring of the emerging situation on a constant basis and to make recommendations on actions that could be taken to cushion the impact on Guyanese, especially those in vulnerable communities.
A parliamentary Special Select Committee was subsequently consulted to discuss the implementation of governmental interventions proposed by the Inter-Ministerial Committee. The Committee also invited Guyanese to make written submissions that were considered.
These interventions included: increasing the disposable income of ordinary Guyanese, subsidising costs in accessing utility services, implementing the Ministry of Agriculture’s GROW MORE campaign and its concomitant budgetary interventions, zero-rating essential food items, diesel and agricultural inputs, monitoring exports of essential agricultural commodities and assistance to single-headed households.
Efforts to increase disposable income, as stated in the report saw a temporary cost of living adjustment of $4000 being paid monthly to Government employees earning a basic salary of $50,000 and below. A five percent wage increase was granted to workers who earn above this amount.
Additionally, old age pensions were increased by 63 percent, while public assistance recipients saw a significant 83 percent increase, making it a total of $3.3B.
Government also sought to reduce the cost of basic goods and services to domestic consumers, such as a reduction on excise tax on diesel to zero and non-restriction on the importation of flour in order to stabilise prices and extract quality flour in the domestic market.
To reduce the dependence on oil and diesel and to contain the cost of agricultural production while benefiting the environment, alternative energy sources are being explored. This includes cogeneration at the Skeldon Sugar Factory. The report stated that 11 proposals for investment in biofuels were under consideration at the Guyana Office for Investment (Go-Invest).
The report asserted that Government believes that action needs to be taken in order to maintain and strengthen the country’s productive capacity. As a result, it adopted a multi-pronged approach with wider ranging interventions. These include:
* Developing projects aimed at increasing Guyana’s agricultural growth potential, through collaborative efforts with international agencies.
* Facilitating production through Agriculture Support Services Projects (ASSP).
* Providing logistic support to farming communities across the country by providing related information on non-traditional agriculture.
* Interventions in agri-processing and the provision of training to farmers to assist in the production of higher value added products.
* Introduction of an educational campaign through a collaborative effort by the Ministries of Education and Agriculture, to raise awareness and educate students on agricultural aspects and
* Continued dialogue with the private sector, civil society, trade unions and other associations in order to listen to their recommendations.
The report concluded that the Committee remained focused on positioning Guyana favourably in light of possible future developments and is confident that the actions taken will allow Guyana to effectively capture the opportunities that existed.
Government also places high value on its cooperation with international agencies in order to ensure that the funding and policy advice made available by them provide both long and short-term benefits.
Further, CARICOM remains an important forum for the promotion of coordinated actions that will move the region to a position of food security with Guyana as the only net food exporting nation playing a central role, the report stated.     (GINA)