Private Sector Commission fact-finding impact of Chinese businesses on locals

Last Updated on Monday, 26 August 2024, 23:04 by Writer

The headquarters of the Private Sector Commission.

The Private Sector Commission (PSC) is canvassing locally-owned businesses to find out whether they are being outcompeted by numerous Chinese-owned businesses that are selling at cheaper prices.

PSC Chairman, Komal Singh did not believe that a “special” wholesale price offer by a prominent manufacturer to Chinese supermarkets was dislocating locals, but said it might be linked to increased purchases.

Mr Singh said a survey was being conducted by PSC members “for them to give us feedback” that contains evidence of unfair competition. “We want some evidence that they are in fact having those challenges,” he said, adding the concerns raise issues such as the payment of taxes and undervaluing imports.

Across Guyana, many Chinese supermarkets are being established near to well-established Guyanese-owned supermarkets and public markets. In many instances, they also sell hardware items. But, the PSC Chairman said new entrants to the market could not be regarded as unfair competition but more competition that is good for businesses and consumers.

The PSC Chairman said he did not receive information that Chinese supermarkets were being supplied products at a lower price. At the same time, he stated that Guyana has a free market economy without price controls which as outside the scope of his business support organisation. “If somebody is offering a lower price to one of their clients because of volume purchase and those sort of stuff, I don’t think we, as private sector, can control that,” he said. Mr Singh said the PSC would find it difficult to get into someone’s private business and discuss price setting.

Instead, Mr Singh suggested that businesses that have a concern about unfair price setting by a group of businesses should take their grievance with the Guyana Competition and Consumer Affairs Commission. He said complainants would have to prove their case to the commission before they could be provided redress.

Meanwhile, Chief Executive Officer of the privately-owned Sterling Products Limited, Ramsay Ali denied offering Chinese supermarkets Golden Cream Margarine 450g x 24 tubs and Golden Cream Reduce Fat Margarine 450g x 24 tubs at a “special price”. Instead, he said a memo dated February 20, 2024, stating that effective date “all Chinese supermarkets will be granted special price” on those 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. Chinese were getting a higher price and their volumes have increased because they’re taking over the business. Chinese taking over the business doesn’t have anything 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 level the prices for those products with those for other supermarkets. “We have one price for supermarkets – all supermarkets – Chinese, Indian, Black, Brown, Amerindian. It’s misleading,” he said.