Low rice price: Not likely $400 million will be a reality-Corbin

Oct 01, 2009 News

“It will be months before farmers can see $400M”-Ramjattan

Opposition parties have slammed government over the $400M rice intervention that was recently announced by President Bharrat Jagdeo saying that it is but an attempt to appease angry farmers.

Both Alliance For Change Chairman, Khemraj Ramjattan and Robert Corbin, Leader of the People’s National Congress Reform, it will be months before farmers can see benefits since the release will have to be debated in parliament.

With rice in trouble and farmers unhappy, Ramjattan is convinced that government is preparing for the 2011 General Elections and has started its strategizing.

Low pricing, bad marketing and inability of government to assist in finding buyers has made matter worse.

To compound this, Ramjattan pointed out, the dry weather is another harsh challenge facing farmers.

“Yes, the rice industry is in a state of crisis. And how the $400M will be spent will have to come to parliament to be debated since we would like to know that farmers are benefiting.”

There should be concrete proposals where the money will go to.

The AFC official, however, sees this as an opportunity where government will hold outreach programs in the guise of consultations with farmers and as a “savior angel”.

In addition to this, although the Minister of Agriculture, Robert Persaud, is claiming that Guyana will see its highest rice production in years, there are reports that the crops are not in the best of conditions due to the El Nino condition, Ramjattan said.

According to Corbin yesterday, it is but another political gimmick that is consistent with the government whenever a serious crisis comes up.

“We have to take with a grain of salt if the money will be made available. Second, how the money will be utilized is another question because despite claims of consultations there will be no genuine consultations and PPP-controlled organizations will use it for political mileage.”

It is clear though, the Parliamentarian said, that the announcement of $400M is meaningless. He alluded to a situation two years ago when the government promised $200M available to single parents. When the year came to an end, not a cent was made available to single parents.

A more recent example is the CLICO bankruptcy where the government came out and announced that all policyholders will be guaranteed payments but to date …nothing.

Corbin was convinced that the manner in which government intervenes in the situation was discriminatory evidenced by a devastating flood in Pomeroon, Essequibo. The PNCR leader said to date he has not seen a $100M intervention.

“So it is clear that there is political discrimination when government attempts to intervene in the various crisis.”

Farmers have been clashing with government over rice prices in recent weeks arguing that government should intervene since they are only getting $2000 per bag of paddy, down from $6,000 from early last year when world market prices went record levels in face of shortages.

With several countries upping production, prices fell on the world market.

But Minister of Agriculture Robert Persaud has said that because of the free market system, government hands are tied and cannot set prices.

Several farmers had met with President Jagdeo two Fridays ago demanding that government do something as at the current price of $2000, farmers will be losing in excess of $17,000 per acre.

Attempts by government and the Guyana Rice Producers Association (RPA) to get millers to agree on better prices has failed to meet with farmers’ satisfaction who are calling for at least $3,500 per bag.

Government is hoping to spend the money on cheaper fertilizers and the lowering of other inputs.

But farmers and stakeholders are asking the big question of when.

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Low rice price: Not likely $400 million will be a reality-Corbin

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