Dear Editor,
Early last year I brought to your attention the fact that in all my years in the food business I had never seen such drastic price increases as those in the immediate post-VAT period. I have just completed a year-to-year comparison of wholesale (not retail) prices and the result is frightening.
In descending order, the price of black-eye peas has increased by 120% in the past year, milk powder by 91%, rice by 83%, salt soap by 74%, cooking oil by 67%, chicken by 45%, fish by 40%, split peas by 32%, potatoes by 25%, cooking gas by 23%, beef by 15%, flour by 8%, and onions by 12%. All these are essential items for the poor man. The only good news is in the price of garlic (now 20% less) and salt and sugar (unchanged).
Even though many might want to blame the government for these unbelievable price increases, the fact is that to a great extent, prices on the world market are the direct cause. For instance, Australia lost half of its grain crop and scientists are saying that they should get accustomed to the fact that the drought of 2007 will become the norm in the future. This, as well as the replacement of wheat fields with corn will further affect the price of flour. The world market price of soya bean, used in chicken feed, increased by 73% last year. And the recent loss of the rice crop through flooding in Bangladesh, as well as the current flood situation here can be expected to result in a further increase in the price of rice in Guyana.
I think we must start coming to terms with the fact that we have only just started to feel the direct and indirect effects of global warming on world food prices. This situation will get far worse before it gets better, and food security will soon become a major concern the world over.
I don’t think I am exaggerating when I say that we can expect a return of malnutrition in Guyana on a wide scale, and sooner than we think. The government must therefore without delay try to find mechanisms that will alleviate, to as great an extent as possible, the pressure on the already beleagured poor in this country.
Just a week ago, a BBC economics commentator made a personal forecast of food riots in South America in 2008. Let us hope that we have the requisite vision and can plan appropriately to mitigate such a disaster in Guyana.
Yours faithfully,
Clairmont Lye
