Latest update February 1st, 2025 5:23 AM
Rice Mill to conclude payments this week – Seeraj
By Fareeza Haniff
Mahaicony Rice Mills Limited (MRL) is expected to conclude all payments to farmers by next Friday.
This is according to General Secretary of the Guyana Rice Producers Association (GRPA), Dharamkumar Seeraj, who told Kaieteur News yesterday that the milling company has made some payments to farmers in Regions five and six.
Dharamkumar Seeraj
Seeraj noted that although the monies will be paid to the farmers, it is unfortunate that the situation had to reach a level which required the intervention of the GRPA and the Ministry of Agriculture.
The General Secretary expressed the view that farmers should be paid by all millers within 42 days of purchase.
Anytime after this, would only put farmers at risk and in an unnecessary position, Seeraj said.
However, he added that the GRPA recognises the difficulties that some millers face. In this regard, he noted that MRL has made a commitment that the situation will not occur again.
Seeraj advised that millers keep their monies aside in order to pay farmers upon purchase so as to avoid a situation like this.
The milling company had made a commitment to the Ministry of Agriculture to pay out a total of $171 million to Region Six farmers before harvesting starts while $17 million was paid to farmers in Essequibo.
On August 18, last, the General Manager of the Milling company, Taramatie Ghanie, along with Assistant Manager of Demerara Bank, Andre Lam, met with Seeraj and Minister of Agriculture, Robert Persaud, where the commitment was made to pay the farmers.
It was reported that approximately $200 million is outstanding to farmers for the first crop by the milling company.
At that meeting, Seeraj had said that the rice industry cannot do without the operation of Mahaicony Rice Mills and taking this into consideration, the GRPA has recognised that the company has been running a ‘little wild’ in the past.
He reiterated that MRL has to operate within the regulations of the industry.
“I think the company has recognised that we are very serious about addressing these issues. The rice industry is very close to the heart of the Guyanese people and we will not allow any single company to ride roughly over the farmers,” Seeraj said.
He added if the milling company operates in a more accountable and transparent manner, then regulations will not have to be framed, which might not be in the interest of a free market enterprise.
It was also explained that if the company is to dishonour its commitment then there are measures in place within the regulation to penalise them.
However, Minister Persaud had said that these measures will be the last resort of the Ministry of Agriculture.
He added that the Ministry is also in the process of drafting regulations to take to Parliament, which will see each farmer being paid 95 per cent of their total transaction by the milling company.
In the earlier amendment to the Rice Factories Act, the Ministry had stated that the amount to be paid to farmers should be 95 per cent of payments.
However, there still seems to be skullduggery taking place in this aspect and as such, Persaud said there is the need for the new regulation.
“Because you have 95 per cent being honoured but then you have five per cent might be accounted for 200 farmers who have small sums owed to them by the mill, but that is not being honoured.
“So we are trying to bring it down now so that every farmer receives at least 95 per cent of their payments.”
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