Private Sector Commission: Investigation into impact of Chinese companies on local populations – Demerara Waves Online News- Guyana

Last updated on Monday, August 26, 2024, 11:04 PM by Writer

The headquarters of the Private Sector Commission.

The Private Sector Commission (PSC) is conducting a survey of local businesses to determine whether they are facing competition from many Chinese companies selling at cheaper prices.

PSC chairman Komal Singh does not believe a “special” wholesale price offer by a major manufacturer to Chinese supermarkets is disrupting locals, but said it could be linked to increased purchasing.

Mr Singh said an investigation was being conducted by PSC members “to get their feedback” that contained evidence of unfair competition. “We want evidence that they actually have these problems,” he said, adding that the concerns raised issues such as payment of taxes and undervaluation of imports.

In Guyana, many Chinese supermarkets are setting up shop near well-established Guyanese-owned supermarkets and public markets. In many cases, they also sell hardware items. But the PSC chairman said the entry of new entrants into the market could not be considered unfair competition, but rather beneficial competition for businesses and consumers.

The PSC chairman said he had not received any information that Chinese supermarkets were being supplied with products at a lower price. At the same time, he said Guyana had a free market economy with no price controls, which was outside the scope of his business support organisation. “If someone is offering a lower price to one of their customers because of volume purchases and that sort of thing, I don’t think we as the private sector can control that,” he said. Mr Singh said the PSC would find it difficult to interfere in someone’s private affairs and discuss price fixing.

Mr Singh instead suggested that businesses concerned about unfair pricing by a group of businesses should lodge their complaints with the Guyana Competition and Consumer Commission. He said complainants would have to prove their case to the commission before they could get redress.

Meanwhile, the managing director of privately-owned Sterling Products Limited, Ramsay Ali, has denied offering Chinese supermarkets Golden Cream margarine 450gx 24 tubs and Golden Cream Reduce Fat margarine 450gx 24 tubs at a “special price”. Instead, he said a memo dated February 20, 2024, stating that on the effective date “all Chinese supermarkets will enjoy a special price” on these products should not have contained the word “special” because they were being sold at a higher price. “When people get volumes, they get a different price. That’s how it works. The Chinese were getting a higher price and their volumes increased because they were taking over the business. The Chinese taking over the business has nothing to do with Ramsay Ali,” he said.

Mr Ali acknowledged that Sterling Products Limited had circulated the internal memo, but stressed that the aim was to equalise the prices of these products with those of other supermarkets. “We have one price for supermarkets – all supermarkets – Chinese, Indian, black, brown, Native American. It is misleading,” he said.