GCCI cautions against price controls on essential goods

See full statement from the Georgetown Chamber of Commerce and Industry:

The Georgetown Chamber of Commerce and Industry (GCCI) 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.

The Chamber 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 alike. Restricting prices without addressing the costs associated with supplying goods risks creating further challenges within the marketplace.

Retail prices are influenced by several factors beyond business profit margins, including international commodity prices, freight and transportation expenses, access to foreign currency, local production costs and distribution expenses. 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 Chamber maintains that efforts to improve affordability must focus on reducing the cost of supplying essential commodities rather than simply restricting the prices at which they are sold.