‘More incentives needed for Agri. sector’

‘More incentives needed for Agri. sector’ – VP Jagdeo

Oct 21, 2023 News

Kaieteur News – In a resolute bid to achieve a substantial 25% reduction in CARICOM’s food bill by 2025, a rallying call has been issued to Caribbean leaders and the private sector by Guyana’s Vice President, Bharrat Jagdeo.

Vice President (VP), Bharrat Jagdeo on Saturday during his address

On Friday, during a pivotal session at the Agri Investment Forum and Expo, held at the Arthur Chung Conference Centre (ACCC) VP Jagdeo underscored the role that the Low Carbon Development Strategy (LCDS2030) plays in advancing agricultural development.

During his address, the VP said that Caribbean leaders must channel significant investments into critical areas such as infrastructure, innovation, technology, and, equally importantly, enact supportive legislation and fiscal incentives for key players within the agricultural industry.

With palpable concern, the Vice President lamented the embarrassingly paltry sums allocated to the agriculture sector in individual Caribbean countries, which are insufficient to catapult it into a flourishing and viable industry. He laid out a compelling blueprint to address this issue.

“If you track the budgetary allocation from most of the Caribbean countries, you would see an embarrassingly small sum of the budget dedicated to agriculture. So agriculture growth requires a few things basically that I believe we should address, that is a policy issue, so a fiscal policy first of all that gives incentives to the agriculture sector, and growth in that sector. that is comparable with fiscal incentives that we give to all of the other industries like tourism etc. because often agriculture in many of these places don’t contribute to a large part of the gross domestic product in many regions…” Jagdeo said.

Jagdeo emphasized that agriculture deserves fiscal policies and incentives that are on par with those enjoyed by thriving industries like tourism. He firmly believes that agriculture must receive comparable fiscal support, as it often doesn’t contribute significantly to the region’s gross domestic product.

In a call to action, Jagdeo urged the implementation of vital laws and regulations, which are currently lacking, to create a conducive environment for the agriculture sector to prosper.

“Secondly, the enabling laws so there is lots of legal requirements or laws… that have not been put in place…” the VP added.

He stressed the critical need for robust infrastructure development, adding, “Infrastructure is needed for agriculture to prosper, you need drainage and irrigation, you need to tackle question of availability of water in some countries…” Jagdeo underscored.

Notably, a substantial challenge lies ahead, with an estimated US$7 billion in investments required to meet the ambitious 25% reduction goal by 2025.

Guyana’s Vice President also raised a critical question, indicating that not even US$500 million has been invested in agriculture over the recent years. He stated that success hinges on strong investments from both the public and private sectors, emphasizing that governments in the region should consider underwriting certain risks for insurance in the agriculture sector. Moreover, he called for the extension of fiscal incentives currently enjoyed by the tourism industry to agriculture.

Jagdeo reiterated the necessity for sustained commitment and a favorable policy environment. It was explained that achieving this vision demands not only political capital, but also the collective understanding and commitment of each country to foster the growth of a vibrant agriculture sector.

It was highlighted that fiscal resources earned from the LCDS 2030 in Guyana have empowered the government to invest approximately US$500 million over the next three years for climate adaptation, and proofing in the agriculture sector.

The Vice President concluded by underscoring the importance of unity in the Caribbean region, emphasizing the need for international funding for climate resilience and adaptation at the upcoming COP28.

The Agri Investment Forum and Expo, held under the theme ‘Achieving Vision 25 by 2025,’ has set the stage for a crucial and transformative journey from October 20-22. It is a concerted effort to address the pressing goal of reducing the food bill by 25% by 2025, underlining the determination of Caribbean nations to forge a sustainable future in agriculture.

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Agri-Investment Forum and Expo, Arthur Chung Conference Centre (ACCC), Bharrat Jagdeo, technology, Vice President (VP)

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