Response to the Kaieteur News editorial

May 17, 2008 Letters

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Dear Editor,
I would like to respond to the Kaieteur News editorial of Sunday, May 4th 2008, and wish to state that, while I agree with some of the information, it is very clear that the writer ventured into an area unknown to him.
He made some clear contradictions, like justifying the increased cost of production but at the same time stating that persons in the rice sector were chasing higher dollars overseas. I would like to inform this newspaper and others that I am most times available to address issues of the rice sector. Additionally, I wish to state that, with the Internet age, there are “tons” of information on rice, its cost of production, prices, etc. Some known rice sites are USDA: www.ers.usda.gov: Rice online, www.riceonline.com etc.
Below are some information that more accurately describes the rice sector, and which the writer needs to inform the public on. These are:
1. Both paddy and rice are zero-rated for VAT. This is in addition to the inputs used, such as: pesticides, fertilizers, spares, etc. This zero-rated means that any items used in the production of these commodities and attract VAT will be refunded if a claim is made by the VAT-registered producer.
2. With the introduction of “Structural Adjustment” since 1989, the government has removed itself from the actual production of rice and has concentrated on the delivery of service and regulatory functions. Neither the government nor any of its agencies gets into price fixing, but seeks to regulate the process of the trade of paddy and rice. The divestment of the major rice mills at Anna Regina, Black Bush Polder, Ruimzeight, Wakenaam, Somerset & Berks, Corriverton, etc was a confirmation of this situation.
3. The issue of food security is not only related to the access to cheap food, but also to ensuring adequate supply. I would like to make the point that at no time since 1992 was rice ever short in Guyana, and we would do everything possible to maintain that record.
4. The cost of production for rice has increased, mainly due to the influence of the increased cost of inputs — oil and its related products, e.g. Urea fertilizer price rose from G$3,200 first crop 2007 to G$6,400 for the crop that is presently being harvested. The editor made a good case of that in the sixth and seventh paragraphs, but contradicted himself in the latter paragraph.
5. The price for paddy today is approximately $5,000. per bag of 65 kg. This will be converted to 42 kg of rice. If you add the cost of drying, milling, transportation, and other costs, it will be approximately $6,500 for the 42 kg rice. This is in conformity with the current market price.
6. The issue of rising rice prices is not a local phenomenon, but an international one, as shown in the table below.
7. The Government and the GRDB, cognisant of the need to increase production and productivity, formulated a ten-year Strategic Plan beginning 2001. The overall goal of this plan is to make the industry more competitive and sustainable. Enshrined in this plan are clearly defined goals, some of them are:
· Increasing field yields from 28 bags per acre to 38 bags per acre by 2010.
· Making available to rice farmers high quality seed
· Increasing the milling yields from 48/65 to a 55/70.
8. Since the implementation of the plan, paddy yields have increased from a low of 3.0 mt/ha in 1990 to 4.8 mt/ha at present. In some areas the yields are approaching the 6.0 mt/ha.
9. In addition to those measures, Guyana has recently become a member of the Latin America Funds for Irrigated Rice (FLAR), and through this partnership the GRDB was able to acquire over 1,000 paddy lines over the last three years. These lines are currently being tested for possible releases. To date 14 promising lines have been identified, which have recorded yields above that of the commercial varieties being cultivated.
10. Other achievements were the release of four “Blast-resistant” varieties being released in the last three years, and the programme is expected to generate another two in the next two years.
11. As part of the extension programme, six improved management practices are currently being tested in farmers’ fields. This is expected to allow the varieties to fully express their yield potential. In some of these fields the farmers are recording yields in excess of 6.0 mt/ha.
12. It is a well known fact that, in order to achieve higher yields, one of the fundamental perquisites is the use of high-quality seed. Towards this end the GRDB has started a programme to decentralise seed production. This, together with the introduction of additional cleaning facility by the RPA and Government across the country, will ensure that the seed produced is properly processed so as to enhance its quality and make it easily accessible as well.
13. The introduction of new varieties with less length/width ratio and continuous training of millers on best post-harvest management practices will allow for the achievement of a higher milling recovery.
14. Finally, this low supply of food internationally, coupled with the increasing prices, provides the ideal opportunity to increase our rice (agriculture) production and consequently improving the livelihood of rural farmers. It can also serve as the impetus for Guyana to be reinstated as the “bread basket of the Caribbean”.
Jagnarine Singh BSc, MSc
General Manager
Guyana Rice Development Board

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