The Georgetown Chamber of Commerce and Industry (GCCI) yesterday declared it was firmly opposed to price controls.
In a statement, it said that it has noted recent public discussions
surrounding the introduction of price controls on essential food items as a means of addressing the cost of living in Guyana.
It did not identify a person or group involved in those discussions. The matter was however raised on Monday by Opposition Leader Azruddin Mohamed.
The Chamber said it firmly opposes the introduction of broad price controls, cautioning that such intervention could distort market conditions, disrupt supply chains, reduce product availability and ultimately increase costs for businesses and consumers.
“Restricting prices without addressing the costs associated with
supplying goods risks creating further challenges within the marketplace”, the GCCI said.
It noted that retail prices are influenced by several factors beyond business profit margins, including international commodity prices, freight and transportation costs, access to foreign currency, local production costs and distribution outlays. It said it would therefore be misleading to attribute high prices principally to excessive
business profitability without examining the factors contributing to the final cost of goods.
“The Chamber maintains that businesses have a responsibility to uphold fair and transparent pricing practices. The GCCI does not condone price gouging, the exploitation of shortages or anticompetitive conduct, and believes that concerns about unfair commercial practices should be addressed through the appropriate
regulatory mechanisms.
“Rather than imposing restrictions on retail prices, the GCCI believes that attention should be directed towards measures that address the underlying costs of essential goods. These include improving access to foreign currency for importers, reviewing applicable import duties and tariffs where these contribute to higher costs, reducing freight and distribution expenses, strengthening domestic agricultural production and encouraging greater competition within the marketplace”, the GCCI said.
The Chamber maintained that efforts to improve affordability must focus on lowering the cost of supplying essential goods rather than simply restricting the prices at which they are sold.
Discussion