RESIDENTS of Diamond and other neighbouring communities on the East Bank of Demerara were able to purchase flour at a reduced price from a mobile unit last Saturday, as a result of government’s decision to cushion the effect of global price increases for food.

The exercise was conducted at the entrance of the Diamond New Scheme, and according to Minister of Agriculture, Robert Persaud who dropped by to have a first hand look at the process, which mainly targets the vulnerable.

The move is seen as a temporary one because it has been predicted that the price of wheat is likely to decline over the next three or four months.

Recalling that the President had announced a $200M programme aimed at reducing the burden on the local consumers as much as possible, Persaud said:

This exercise has two aspects: There is an arrangement the President worked out with the bakers whereby they don’t have to pass on the cost of the wheat that they use and secondly this here is where the trucks are going across the country to vulnerable communities whereby flour is being reduced,” Persaud explained.

The programme is being executed by the New Guyana Marketing Corporation (New GMC).

The minister said that there is a similar initiative which started since January for rice and now the government has brought on flour temporarily, adding that the rice programme will continue.

This will be in all regions and I want persons to look out for that and to benefit from this… we hope to distribute at the end of the exercise close to 150,000 packets of the one kilogramme flour,” he encouraged.

It is temporarily and we hope by which time there will be some stabilization in the price globally so that the consumer can go back at getting the prices at a level that they can all afford,” he pointed out.

Persaud noted that this is just part of a number of initiatives that the government has undertaken.

I think it is significant…the issue of wheat and flour is very important because a lot of people use that for their staple,” he asserted.

The minister noted that the government cannot control the price, hence they are using their resources to work with the National Milling Company Guyana (NAMILCO) and bring these trucks out to the consuming public.

In fact, we give back the consumers everyday close to $1.8M using the trucks,” he revealed.

Alluding to the response to the intervention, he said nearly every truck has been sold out and in some cases, additional supplies were needed.

The minister pointed out that the trucks are in the communities at a specific time and this scheme intends to benefit the consuming public by bringing some savings by reducing the prices.

?ut regarding against persons buying and reselling, everyone will not be allowed to purchase more than four kg…that is the maximum because it is intended to get to the most vulnerable group,” Persaud pointed out.

…no one can come and buy wholesale and then go back and have the flour resold at a higher price,” he exhorted.

Meanwhile, the Guyana Chronicle spoke to some of the residents of the community who expressed their support and appreciation towards the initiative taken by the government to help alleviate the growing prices.

One consumer said that “this is helping out the poor people a lot and I am thankful to the government for this initiative”.

Another resident of the Diamond New Scheme said “this is wonderful…from what I know the way the economy is going, it is not just that everything is left to the government…it is just world prices that dictate how things go and there is a demand for food.

…it is not the government fault but it is nice to see they can do something to alleviate the suffering of the average working man and the government is taking the initiative to bring ease and that is wonderful,” the resident noted.

Another customer also noted that the people in the community regard the step taken by the government as a good idea which can help ease on the pocket.

This initiative is very good and it is helping out a lot of people and people are depending on it…up to this morning there was a big crowd here,” the resident observed.

Given escalating food prices, the government announced plans to absorb the increase in the price of flour and to stave off increases in the price of bread, biscuits, and pastries where the government will bear the price increase in flour sold to 22 bakeries which control about 95% of the market.

In addition, the government has also bought 200,000 one kilogramme packets of flour for sale (minus the price increase) to vulnerable groups which will be carried out by the New GMC.

Also, other measures to fight the rising food prices is a programme under the “Grow More” food campaign, which promotes increased production by commercial and subsistence farmers, chemicals and fertilizers, along with some 600,000 packages of vegetable seeds, will be distributed across all ten regions of Guyana at a cost of approximately $20 million.

A $4,000 cost of living ‘adjustment’ and a 5% pay hike to public sector workers will be implemented and the $4,000 tax-free cost of living adjustment will go towards government workers, teachers, soldiers, policemen, firemen and prison officers whose basic salaries are below $50, 000. The 5% salary increase will be retroactive to January this year.

The cost of living adjustment will be added to the salaries of government workers until the end of the year, following which there will be a review.