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Rice Rise
The announcement that another contract for paddy and rice has been secured with Venezuela is the second bit of good news for the sector. The first was that production this year would most likely surpass 400,000 metric tonnes – which would be a record.
The contract with the Venezuelans is the fourth in as many years and is the result of direct negotiations between the heads of state of the two countries. Whatever one may say about President Chavez, it cannot be doubted that he puts his money where his mouth is when it comes to matters affecting the less advantaged of society.
Our rice industry is one of primarily small farmers and the Venezuelan contract provides a very useful base price from one angle and a vent for excess production from another. This year’s price of US$500 per metric tonne matches the price on the world market that has recently spurted upwards. This translates into substantially more than the GY$4000 per bag that was the average price paid out, for instance, on the Essequibo Coast for the last crop that has now been completely harvested.
But with the contract only now finalised, it precipitates an interesting question that the Ministry of Agriculture or the GRDB must address. In a laudable attempt to ensure that the paddy price secured from the Venezuelan market is passed on to the farmers, they organised ‘farmer representatives’ to purchase paddy from their cohorts and to have guaranteed access to the shipments. Outraged farmers are now complaining that the ‘profits’ obtained from the early purchase price over the later secured price ought to be passed on to them.
The ‘representatives’ have balked and are allegedly pocketing the excess for themselves. What makes the situation even more ironic is that the representatives were primarily originally from outside the PPP-affiliated RPA and the government’s exercise could have been seen as an effort at greater inclusivity. Maybe what it proves is that the drive for acquisitiveness transcends political boundaries.
But back to the rice sector: the changes that the government has introduced in the extension services, D&I, drying and marketing must be intensified. But the farmers must play their part. Even though they complain about volatile prices, they have, for instance, refused to organise themselves into farmers co-operatives that are standard in the developed countries.
These co-operatives have integrated vertically into storage, milling and marketing of their agricultural produce (such as grains) and obviously increase their value and profitability. Our farmers are very traditional and while this has kept them tied to the land it had also made their survival sometimes precarious.
There is an observation that should be heeded: “If you farm as a way of life, it could be a very expensive business; but if you farm as a business, it can be a very rewarding way of life.”
From the governmental side, this newspaper has long advocated a long term expansion plan for the industry to reach a million tons in production. At this level, since most of that production would be directed toward exports, we would be in a better position to become price setters. We are very fortunate in that with two major rainy seasons on the coastland, we can plant and harvest two crops annually.
With careful husbandry and planning, there were some farmers who were able to get in three crops in the past and we wonder with our modern technology if we cannot replicate this feat.
Additionally, the dry-rice programme that has been introduced in the interior savannahs must be sustained. If the Brazilians can produce rice in the identical land and climatic conditions across the border there is no inherent reason to prevent us from doing the same.
As Erick Hoffer pointed out: “In times of change the future belongs to the learner, while the learned will find beautiful ways to cope with a world that no longer exists.” We must stop trying to solve old problems with worn out policies. Instead we must choose to become learners, in order favourably to enhance the future of our rice industry.
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