Guyana President warns cash grants cannot solve cost-of-living crisis

President Irfaan Ali has stated that direct cash grants are insufficient to resolve Guyana’s persistent cost-of-living crisis. While acknowledging that financial transfers provide a temporary cushion for vulnerable households, Ali warned that they do not address the underlying causes of inflation regarding food, fuel, and transportation.

Despite government interventions—such as removing Value Added Tax (VAT) on agricultural inputs, reducing duties, and providing fertilizer subsidies—retail prices remain high. Ali highlighted a significant gap between farm-gate prices and retail costs, noting that produce is sometimes sold at retailers for up to ten times the price paid by farmers. He emphasized the need for a structured approach to investigate the pricing discrepancies between producers and retailers.