Local miller increases purchasing price for paddy

Apr 27, 2009 News

– Agri. Minister hopes other millers will follow suit

By Tusika Martin

As rice farmers continue to complain about the price for the commodity countrywide, the Old Mac (Guyana) Inc. has increased its purchasing price.
Kaieteur News was told yesterday that the company has increased its payment terms by 14 days to accommodate the increase.
In a letter addressed to the Minister of Agriculture, the company, which is located at Hampton Court, Essequibo Coast, stated that farmers would be notified if there are any further increases before the end of the crop.
The letter stated that the price for Grade ‘A’ paddy has increased by $400, moving from $2,600 to $3,000 per bag.
Grade ‘B’ paddy has increased from $2,500 to $2,700.
Speaking with Kaieteur News from Boa Vista, Brazil, Minister of Agriculture, Robert Persaud said yesterday that it is hoped that as the price for rice improves internationally, the local millers and exporters will pass on these increases to farmers.
This, he said, was a commitment given by millers some weeks ago during a meeting with him and other stakeholders in the sector.
Persaud added that he hopes that this will be the trend by millers rather than a one-off arrangement.
In an article carried in a Trinidadian newspaper, Charles James, Managing Director of JMH Enterprises, stated that as an importer of rice from Brazil, he is now able to buy at cheaper prices because of lower labour costs in that country.
He said that he spends US$1M a month to buy 12,000 metric tonnes of rice from Brazil.
James, who imports white rice from Guyana, has a positive forecast for the commodity.
“I am even looking at a further reduction in price,” he was quoted as saying.
Another importer of Guyana’s rice in Trinidad, Balliram Maharaj, who is the President of the Supermarkets Association in the twin island Republic, said that the fall in Europe’s demand for rice supplies in this hemisphere has created an oversupply, pushing down prices as more supplies become available on markets.
Early in March, Minister Persaud had to intervene in a dispute between rice farmers and millers.
Farmers were at the time expressing frustration with the low price for paddy being offered while the millers were holding out that they could not have given better prices for the commodity.
Farmers were calling for more competition within the sector, as they believe that millers are holding them to ransom.
Persaud had urged that the situation requires both sides working together since the entire industry can collapse if unreasonable demands are made.
Since then, the Minister has held several meetings with rice farmers, millers/exporters and the banking industry to address concerns within the sector.

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