As cost-cutting measures bite deep... Rice Board head suffers salary cut

As cost-cutting measures bite deep… Rice Board head suffers salary cut

Sep 22, 2009 News

By Leonard Gildarie

As low paddy price and adverse weather hit farmers countrywide, cost-cutting measures have seen at least 12 staffers of the rice regulatory body being sent home and benefits and salaries of its General Manager slashed.

Minister of Agriculture, Robert Persaud, confirmed yesterday that the Guyana Rice Development Board (GRDB) is also facing ongoing changes as the local rice industry attempts to adjust to the world market situation and to falling prices.

While the Minister did not go into details, official sources confirmed that GRDB faced budget cuts after rice export commissions charged by that body were reduced from 10 per cent to four per cent to offset hardships faced by farmers. Government recently announced a hike in the rice export commissions from four per cent to six per cent after farmers complained that millers were not passing off the benefits to them.

This may even be raised further as Minister Persaud has threatened millers to pass on the savings.

These commissions which are paid by exporters were supposed to have benefitted rice farmers since there would have been less before-market costs.

Faced with less money for operations, including research and inspections of rice mills, a number of departments within GRDB were made redundant.

Even GRDB General Manager, Jagnarine Singh, did not escape the cost-cutting measures with his benefits and remunerations slashed by 40 per cent. A bodyguard assigned to Singh was taken away, as well as a security detail from his home.

Government is facing an unprecedented battering from rice farmers who are demanding that they do something about the low paddy prices which are hovering around the $2000 per bag mark.

The $2,000 price will mean that farmers will lose around $17,000 per acre, they claimed.

A more realistic price would be $3500, per bag, they contend. Some millers have blamed the low prices on government. They say that a recent deal to sell some 20,000 tonnes of rice at a particularly “low” price has placed them in a disadvantageous position to negotiate with overseas buyers demanding a low price also.

Government, on Friday, announced that it has set aside some $400 million (US$2 million) to assist the industry. However, a consultation will have to be done with farmers and other stakeholders before a cent of the money is disbursed.

The announcement was greeted with criticisms by a farmers group which described the $400 million intervention as a drop in the bucket and a government’s “gimmick”.