Guyana needs to reinforce its presence in Jamaican rice market

Guyana needs to reinforce its presence in Jamaican rice market – Agri Minister

Apr 08, 2009 News

By Tusika Martin

Minister Robert Persaud meeting with rice millers yesterday

Guyana needs to reinforce its presence in the Jamaican rice market so as not to allow its competition to influence decisions regarding the sector thus making it difficult for Guyanese exporters to compete in that market.
This is according to Minister of Agriculture, Robert Persaud, who on Monday met with local rice millers to address concerns of price for paddy and to examine ways to make the sector more competitive.
During the meeting, the Minister highlighted the need to have proper marketing information to the Jamaican public through the media.
He urged millers to visit that market at least once a year in order to have more concrete arrangement with their buyers.
“We have a Memorandum of Understanding to supply 60,000 tonnes per year and we need to ensure that the largest player in that market, which is a company from the United States, is not influencing decisions and making it difficult for our people to compete in that market,” Persaud said.
A letter of reminder about the signed MOU will be dispatched to Minister of Investment, Industry and Commerce of Jamaica, Karl Samuda, during this week.
Last year there was much controversy over the purchase of rice from Guyana following a decision to waive the Common External Tariff (CET) enabling Jamaica to purchase extra regional rice.
During a visit to Guyana on November 10 last, Samuda said that Jamaica wants the relationship between the two countries to be further strengthened.
According to the MOU, which was inked for the period of one year commencing from January 1 last, it is stated that Guyana will make available to Jamaica 60,000 tonnes of rice at market prices, at an average of 5,000 metric tonnes per month.
Prices negotiated between exporters and importers at the commencement of the crop, or contract period, will be applicable to that crop or contract period.
As of January 1 last, Guyana has not been imposing export commission on rice exported to CARICOM member states.
When Guyana is unable to supply, the MOU said, it will immediately notify Jamaica, and will not object to a request by Jamaica for a suspension of the CET on an amount to be agreed to by both parties. The MOU will not supersede the existing arrangements between Guyana and Jamaica in respect of the trade in rice.
During Monday’s meeting issues relating to transportation within the sector were also raised.
One of the complaints that were raised was the fact that trucks transporting the commodity have to wait for long hours at the Demerara Harbour Bridge.
There were also concerns about the weight restriction at the Berbice River Bridge but according to the Minister these have been resolved since the access road has been completed.
He said that he was informed by the authorities at the bridge that the weight limit will be lifted very soon.
As with the local transport system, exporters also complained about delays at the wharfs since Customs Anti-Narcotics Unit officers take long to examine the outgoing cargo.
This, Persaud said, is as a result of a decision taken to have all outgoing consignments examined before leaving Guyana.
“We want every shipment to be examined before leaving the country…there might be some delays in this area but representation will be made in this regard,” Persaud said.