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Essequibo farmers threatens action
Low rice price…
– gov’t mulling rice boat for Region 2
Essequibo rice farmers are threatening action on paddy prices but government is urging for commonsense to prevail since prices are determined by international markets and not by government.
With over 16,000 more tonnes of rice projected to be harvested for this crop, there are fears that overseas buyers may grab the opportunity to negotiate lower prices thus affecting the price local farmers are getting.
Farmers are now saying that in many cases, millers are not giving them prices yet taking their paddy which is going as low as $2000 per bag.
Already, the inability to sell rice to a seemingly glutted market has translated into only a few exporters indicating that they have signed contracts with overseas buyers.
FARMERS’ CRY
Early last year, paddy prices were as high as $6000 per bag as the world market indicated shortages. However, several rice-producing countries have since ramped up production and world prices sank.
In an all too familiar cry, farmers complained of being robbed by millers via quality, weight and bounced cheques. In some cases, complaints about bounced cheques issued since last year are still to be resolved although reports were made to the relevant authorities.
Farmers said that while in Essequibo paddy prices are hovering around $2000 per bag, they were being offered in excess of $3000 from mills in Region 3.
Many farmers gambling on last year’s high prices planted more rice this crop
However, high transportation costs were among the top challenges facing any such decision to sell there.
Several farmers from across Guyana attended a meeting with Minister of Agriculture Robert Persaud at his ministry on Friday. Prominent millers were also in attendance along with top officials of the Guyana Rice Development Board and Guyana Rice Producers’ Association.
ADDITIONAL VESSEL
Contacted yesterday, the Minister, who was on his way to the Essequibo Islands to meet with rice farmers, stressed that the rice situation is top on the government’s priority list.
However, he said, “It must be recognized that government cannot fix the price for paddy as this is determined by international market price and demand.”
Noting that government is sharing the farmers’ concern about the current level of prices and the need to ensure that rice planting is profitable, Persaud reminded that three weeks ago, he had met with Essequibo farmers to discuss the price and industry outlook.
Currently, there are also a number of follow-up meetings between millers and farmers across the country.
Government is also contemplating a special vessel that will transport rice from Region 2 to mills in Region 3 and elsewhere.
According to the Minister, in addition to supporting farmers in their demand to get a fair price from millers, there will be moves to work more closely with millers to diversify the overseas markets, with other key countries being mulled. These include Haiti, Venezuela and Colombia.
The actions will be coupled with an ongoing review of legislation to protect farmers with RPA playing a stronger role in possible support interventions.
SITUATION ANALYSIS
Meanwhile, according to figures provided by government some 70,536 hectares have been sowed for this crop across the country – about 16% more than the amount estimated. If this is translated to rice yields, this will mean an additional 16,000–17,000 tonnes of rice that will be available for exports.
“This increase in production will result in the increase on the supply side of the ‘economic equation” that determine prices in a competitive market environment and therefore can result in the decrease in the prices paid to farmers,” according to a government report yesterday made available to this newspaper.
Many farmers gambling on last year’s high prices planted more rice this crop, but the sudden drop in world prices has caught both millers and farmers holding stocks with no clear idea of who will be buying or at what price.
With government saying there is no aggressive marketing of Guyana rice, millers/exporters either await the “few” buyers that purchase Guyana’s rice or they offer it on the international market at lower than the market price.
Ultimately, if the price decrease is after the sale of the paddy by the farmer to the miller, then the millers unable to pay the farmer the agreed price.
According to Minister Persaud, millers and farmers may now be faced with a similar situation that occurred a few years ago when they were not able to service the loans and some of them were forced into receivership by the banks.
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