Guyana Rice Development Board advisory to rice farmers is pathetic

Mar 18, 2010 Letters

Dear Editor,
“Sad indeed” is the phrase I would like to use to describe an advertisement in the local press advising rice farmers not to sell paddy to Mahaicony Rice Limited.
On at least three occasions that I have visited Guyana, I read about payment problems experienced by farmers who sold their paddy to this company. Now, that I am here again, Mahaicony Rice Limited is once more in the news.
The Guyana Rice Development Board (GRDB) which has now put out this new advisory is not using the legal remedies at its disposal to ensure the company’s compliance with the Rice Factories (Amendment) Act of 2009.
The amendment, according to the GRDB, states clearly inter alia that the millers must pay the farmer 50 per cent of the value of the paddy supplied within two weeks and the remaining balance within 42 days – both payments to be calculated from the date of supply.
From the information which I have been able to get from reliable sources in the rice industry, this company which is owned by a Dutchman who lives in The Netherlands has for long been using the farmers as the cash cow for other ventures outside of Guyana. The latest venture is a container and bulk shipping line. Farmers have been owed for more than one year, in some instances. Before that I am told he established a flour mill in Trinidad. All these ventures whilst he owed Guyana rice farmers!
Why is the Government of Guyana allowing this man to always owe the poor rice farmers?
My sources told me that the government is a very good friend of this rice miller and it allowed him to establish mills across Guyana so that now he has a monopoly on the rice business and do as he feels.
Mahaicony Rice Limited have always failed to honour its financial obligations to the farmers and only makes small payments when the matter is publicised.
The GRDB advertisement conceded that the company continues to ship out rice. So where is the money belonging to the poor rice farmers of Guyana going? Why is the GRDB continuing to allow this company to keep shipping out rice and not paying the farmers? Suppose the company ships out all the rice, does not pay the farmers, decides to wrap-up business in this country and when the farmers try to levy on the company’s assets in Guyana they find it all encumbered by banks? Where is the financial guarantee for farmers when they deal with these overseas business owners? Something is terribly wrong and the farmers can instantly be destroyed by such people.
Why are the GRDB and the government failing to move against this company and rescind its rice milling and export licences? For how long will the farmers have to endure this injustice? For how long would Mahaicony Rice Limited get away with this injustice?
Have the farmers’ real representation, or is it just lip service? Where is the RPA in all of this? Is the RPA also a friend of this Dutchman?
Something radical must be done to ensure that rice farmers are treated with respected. They have gone through a lot and are still managing to survive and help build this country.
The Dutchman must be told to change his ways or his mills will be nationalised.
Lall K. Ramdin

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