Consumers shopping conservatively to survive

Mar 18, 2014 News

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In a seemingly developing Guyana that has been registering positive growth within recent years many households are still struggling to make ends meet.
Taking into consideration that the average working class family spends over $20,000 on a ration bill containing basic items, it is questionable how minimum wage employees and the lower bracket of public servants and their families survive.
It was observed that working class consumers have taken a conservative approach to buying. As such, there is no spike in the persons’ grocery lists but a shift from purchasing costly items to the more affordable ones.
Last July, Government implemented the new minimum wage of $35,000 per month or $200 per hour and by year-end made its annual arbitrary five percent increase to public servants salaries. Non-Governmental Organizations (NGO) such as Red Thread and the Guyana Public Service Union have always been vocal about the increasing cost of living and the meager wages and salaries paid to employees.
Their views are echoed across Guyana and reflected in the struggles to purchase essential items that would keep the burners of the stove lit. After paying utility bills, transportation, and rent or mortgage putting aside money for food is probably the last thing a couple does. In fact, many don’t even reward themselves with allowances or take a mini vacation.
In Guyana the majority of the population undoubtedly lives from paycheck to paycheck. This is the reality for Nalini Singh, an elderly widow, who lives with her three sons in a rented house in Diamond Housing Scheme.
Singh moved from Essequibo to “Georgetown” for her sons to acquire jobs because of limited job opportunities there. Being semi-skilled labourers, the three boys were lucky to land work in the construction industry. Those jobs are not fulltime and require careful spending of limited financial resources for “rainy days”.
According to Singh, she buys about $20,000 worth of basic groceries on a monthly basis and spends a further $16,000 on vegetables and $6,000 on meat, fish, eggs and sausages. Some months she finds it difficult to replenish the empty containers in her kitchen.
Singh, who is very conscious of the increasing cost of food items, said that within the past two years the two main items- rice and flour- have increased. But, because these items are needed to prepare a meal for her working boys other items like peanut butter and Milo were struck off the list.
Her expenses were similar to Margaret Charles, who lives a few doors away. Charles has a nuclear family and both she and her husband work. She does poultry farming on a small scale and her husband is a public servant.
For the past 11 years, the Charles family has been living in their own home in Diamond paying a mortgage of $14,500. Charles recalled that three years ago she spent about $50,000 to $60,000 on ration. But, with the increasing cost of food items and other expenses Charles was forced to drastically cut her ration bill to about $20,000 monthly.
According to Charles, she now buys goods fortnightly, essentially replenishing what would have been used up. She said that if increases to her husband’s salary over the years were substantial, cuts to the grocery bill would not have been necessary.
Her small scale poultry operation has been helping to supplement the finances of the family. But, the ration list is very basic and does not comprise items like biscuits, jello, cake mix, peanut butter, cheese, tin milk and even red beans.
According to a shopkeeper in the area, she does not stock her shop beyond the basic food items since the majority of the customers buy only those basic items. On average, a person who buys items weekly, spends about $8,000.
She noted that the prices for onions, garlic and potatoes tend to fluctuate. For instance, two weeks ago a bag of potatoes was $3,000 while last week suppliers were asking for $4,200 per bag of potatoes.
However, the cost for sugar has been the same for some time and the prices for some items like Chinese sauce, sausages, and split peas have been constant with minor increases of a $10 or so.
The shopkeeper said that the cost for a tin fern leaf milk powder has dropped by $1,000 but loose milk powder which is purchased by majority of her customers increased.
The cost of cheese, which is bought by daily shoppers, has increased. Last year a slab of cheese was sold for $8,000 but this year cheese is sold $10,000 per slab. Previously, $100 could have bought three eggs now a customer has to pay $120 for three eggs.
She added that some items such as chowmein and bread would increase whenever the cost of flour increases. Whenever, this happens consumers purchase more rice and channa.
According to the shopkeeper, consumers are becoming conscious about the cost of their goods and have been changing their buying habits by looking for cheaper brands.

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