Rice production for 2013 projected to surpass last year’s

Mar 20, 2013 News

About two weeks ago harvesting of the first rice crop for 2013 began and the Guyana Rice Development Board (GRDB) projects that 240,000 tons of rice would be produced. Already, the Board expects production for this year to surpass last year’s 422,000 tons.
General Manager of GRDB, Jagnarine Singh, in an interview with this publication yesterday, said that over the past three years rice production has had an increasing trend and that is unlikely to break this year.

GRDB General Manager, Jagnarine Singh

He related that owing to the lucrative returns and favourable weather conditions, rice farmers are motivated to produce more. So far, in excess of 200,000 acres will be harvested, with only 10 percent completed. Previously one hectare used to produce 4.8 tons of paddy, but that has increased to 5.5 tons.
According to Singh, Guyana has secured rice markets with Venezuela, Europe, Jamaica, and CARICOM, as such there is no aggressive movement towards entering other markets. Arrangements with each market have allowed large rice millers and by extension, farmers, to enjoy reasonable prices for their paddy and rice.
He explained that given Guyana’s position as a CARIFORUM state, it has been able to benefit from the Economic Partnership Agreement with the European Union. This arrangement allows Guyana’s rice duty free quota access to the European market.
In addition, because of CARICOM’s Common External Tariff – a rate of duty applied by all member states to a product imported from a country which is not a member of the market – Guyana can afford to compete with other rice producers selling their produce to other CARICOM states.
He indicated that a 25 percent rate of duty is applied to rice imported from a country outside of CARICOM. Two of the most lucrative markets in CARICOM are Jamaica and Trinidad and Tobago.
Singh said that two-thirds of rice produced locally last year was exported to Venezuela through the Petrocaribe Energy Cooperation Agreement, which sees Guyana buying fuel from and selling rice to Venezuela. The demand for rice and paddy in Venezuela is high and it is unlikely that Guyana will lose this market, he added.
In light of these markets and the high price for rice, farmers have been increasing their production. In fact, within recent years rice millers have been paying farmers roughly $1,000 more per bag of paddy.