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GRDB to review licences of defaulting millers

Nov 26, 2008 News

As reports of rice farmers’ plight with regards to the late payment for their commodity continues to surface, the Guyana Rice Development Board (GRDB) says it will be reviewing the licences of defaulting millers.
The GRDB has been receiving a number of reports that millers are taking longer than the time agreed upon to pay farmers.
Over the years, steps have been taken, including legal recourse, to ensure that farmers are paid in a timely manner.
Yesterday, the Ministry of Agriculture issued an advisory urging millers to meet with farmers on a regular basis to explain their position, and also to expedite the payments to farmers by the end of December.
The ministry, in its advisory, noted that it is disheartening that this problem has arisen once again.
The GRDB has been directed to work with farmers and relevant stakeholders to ensure this issue does not result in a negative impact on the rice sector.
Speaking with Kaieteur News, Minister of Agriculture, Robert Persaud, said yesterday that he is troubled by the few millers who lapse in their payments to farmers.
The GRDB has been tasked, he said, with meeting those millers to ascertain their payment schedules, which should be concluded early.
“Not only legal action is being contemplated by farmers, but under the laws, there are other recourses, including suspension of license. Farmers are not bankers, and millers must ensure that financing  arrangements are sorted out.”
Millers were reminded through the advisory that the licence for milling rice is annual.
The Rice Factories (Amendment) Act states that “licensee’s total debt owed to the producers shall not, at any given time, exceed 5 percent of the licensee’s gross turnover for the preceding calendar year ending on December 31.”
The GRDB has also been directed to support farmers by paying all legal fees for farmers who are desirous of taking legal action to ensure their payments.

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