Supermarket Association: Diversification, reopening of economy crucial

Supermarket Association president Rajiv Diptee has described TT’s economic situation as “grim” and called for speedy investments for diversification.

Finance Minister Colm Imbert on Wednesday, via a virtual press conference, outlined the country’s economic outlook for the period October 2020 to January 2021, where he noted a decline of $1.8 billion or 13 per cent less in estimated revenue.

He cited the covid19 pandemic and other external factors for the negative variance.

Diptee, speaking with Newsday shortly after the press conference, said he understood that Government was strapped for cash but called for diversification and a full reopening of the internal economy.

He said while diversification has been the talk for decades, it was time for forced action in this regard.

“While we are helpless on the international circuit, there are some things that we could be doing. Diversification has been ole talk, and to say we are going to start that conversation again – we are probably five to ten years too late.

“The pandemic has forced diversification. We have been advocating for investments in the local agro-processing industry. While it is not starting up at an ideal time, it is never too late.”

Diptee said food prices were expected to increase soon, citing distributors’ challenges in accessing foreign exchange.

“The access to foreign exchange is not there and the pressures with shipping globally has reached a crisis level. We have a cocktail here that is going to create lot of pain for 2021.

“We have to look at alternative markets, as far as India. We have to look all over for the best buys because the pockets of the end customer have to afford what is being offered on the shelf.”

Imbert on Wednesday also noted that Government will have to continue borrowing to keep the economy going, having already borrowed $3 billion from a loan facility and $2 billion withdrawal from the Heritage and Stabilisation Fund (HSF).

Diptee called on Government to invest more in vaccines in order to fully reopen the domestic economy, as small and medium businesses were the ones to drive the cash flows internally.

This socio-economic imbalance, he said, will only result in increased crime, poverty, and other social challenges.

“Without that life blood, small businesses have been suffering and people at a grassroots level do not have enough money in their pockets to make ends meet.

“People want to see from Government the exit strategy from the pandemic and because there is none, there is a lack of confidence. In the absence of this plan, we do not know what to do in the private sector.”