Issue #1 Volume #43
Editorial
Combat Voice of the Guyana Agricultural and General Workers Union (GAWU)
The cost of living One of the loudest cries of the working people at this moment concerns the steadily rising cost-of-living. According to data released, inflation was 5.2 percent in 2021. Strikingly, but not unsurprisingly, food prices expanded by 11.6 percent during the same period. That is more than double the official rate of inflation. Over the last five (5) years, food prices rose by nearly 27 percent. This comparison is important as the 2021 food price gain accounted for 40 percent of the increases recorded in the period. Notwithstanding official statistics, workers continue to lament the increases in prices of many staple commodities, much in excess of official data.
January-March, 2022
GuySuCo hoping to rebound in 2022
The United Nations Food and Agriculture Organization (FAO) food price index has indicated that, across the world, food prices have risen astronomically. Between January and February 2022, food prices globally rose by 3.9 percent. It was among the highest single-month increases in food prices ever recorded. The FAO also indicated that between February 2021 and February 2022, food prices globally shot up by 20.7 percent. It is almost ironic that food prices are reaching unprecedented levels when food production is also reaching new highs. The FAO has indicated that across all major food groups, production is expanding. The era of bountiful harvests has come when many in the global poor are facing starvation and malnutrition, as they are simply priced out of the market. The rising prices of food, according to the FAO, is driven by several factors. Majorly, price increases have been attributed to higher price levels of internationally traded food commodities and a threefold increase in freight costs. For developing countries, the FAO has warned they rapidly rising prices of food commodities and energy pose significant challenges for poorer countries and consumers, who spend large shares of their incomes on these basic necessities. Though reamining a major agricultural producing country we in Guyana have not been spared. Increases in the cost of imported food items as well as imported agricultural inputs have contributed to the massive jump in food prices. The increases have largely been blamed on global supply chain constraints, which have driven up shipping costs while lengthening shipping times, contributing at times to shortages. For its part, the Government has sought to take proactive steps to alleviate the burdens faced by the populace. In this regard, imports were being assessed at pre-pandemic shipping rates to reduce taxes payable and curtail increases at the shelves. While good intentioned, arguably, it has not translated to any meaningful reduction in prices. In as much as there are price increases which may be out of control, the Government support, amounting to billions of dollars lost to the treasury, has not benefitted the ordinary Guyanese. Today, the Guyanese working people continue to confront escalating prices for many important commodities. Prices for important and essential items, in some instances, have more than doubled, and there is hardly any commodity which has seen any reduction in price. It appears that some in the business community, while benefitting from the Government’s largesse, continue to extract profits and super profits from our working people. It is an unfair situation to both the Government and ordinary Guyanese. There is obviously a need to relook at the current policy with a view to providing greater direct support to the working people.
The GuySuCo, following its poor performance in 2021, hopes to rebound somewhat, and estimates sugar production will reach 64,889 tonnes in 2022. According to the GuySuCo’s production estimates, the industry will produce 20,261 tonnes sugar in the first crop, and 44,628 tonnes in the second crop. Even if this year’s anticipated production is realized, the improvement is still far away from the potential of the industry. Turning to the first crop, GuySuCo, as at March 29, 2022, has produced 7,924 tonnes, with production at the respective estates being as follows: Estate
Target
Production
Variance
Albion
9,078
4,893
4,185
Blairmont
6,888
2,980
3,908
Uitvlugt
4,295
66
4,229
Industry
20,261
7,939
12,322
The production targets can be hardly considered targets altogether. In the past, the functional estates would have attained such production levels in just a few weeks, and without any fanfare and fuss. Indeed, the situation causes us great apprehen-
sion and a deep sense of anxiety. Certainly, given the substantial investment channelled to the industry in recent times, high expectations are harboured that the industry would begin to see positive momentum especially given the industry’s importance to thousands of persons and scores of villages. Presently, the Uitvlugt first crop, though officially commenced,has not gotten underway, as the factory suffered a breakdown within hours of the crop’s commencement. Though efforts to repair the damaged components are underway, we ask whether it is not an instance of being penny wise and pound foolish. Certainly, such obvious issues which have deleterious effects ought to have been addressed comprehensively in the out-of-crop period. Yet it appears not serious enough attention was paid, and the patchwork repairs were obviously inadequate. This year, the Government is channelling a further six billion dollars to the industry. We all have a responsibility to ensure that monies are spent properly, and not on extravagance. Investments in the fields and factories are necessary, but similarly are investments in the workers, without whose labour none of the wheels of the industry can turn.