Resolution to rice troubles hinges on Guyana, Venezuela inking sale agreement

Apr 27, 2013 News

Troubles facing the rice industry may soon be over as Guyana hopes to sign and seal the deal with Venezuela for the exportation of high quality rice and paddy to the Spanish State, the first week in May.
The delay in inking the deal weeks ago resulted in trucks filled with tons of paddy waiting in long lines to dry at mills, millers running out of money to purchase additional paddy, and the slow outflow of rice and paddy from mills.
Farmers have been protesting the long lines, price being

GRPA Executive (L to R) Bretnold Maynard, Bashir, Dharamkumar Seeraj and Leeka Rambrich.

offered and even the presence of paddy bugs among crops.
According to Dharamkumar Seeraj, General Secretary of the Guyana Rice Producers’ Association (GRPA), this unwanted situation is a temporary industry problem that would be resolved without long term effects on the rice industry.
However, temporary measures are being put in place to cushion the effects of the large sums of monies expended by millers and farmers during this crop which hauled in the largest volume of rice to be harvested.
Seeraj said that the Association spoke with Agriculture Minister, Dr. Leslie Ramsammy, to access $500M that was allocated in the 2013 Budget to help farmers. This money would be paid to the millers who will pay identified farmers. The money earned from the export would be reimbursed to the Ministry.
Recently, during meetings, farmers were asked to fill out forms. The responses on the forms would help to determine the extent to which farmers are affected and how assistance would be given in terms of planting materials and fertilizers.
He said that GRPA would also approach commercial banks to which farmers are indebted and request the rescheduling of loans and even write off interest on loans. This is not a unique measure Government is taking.
Providing a background as to what led to the current problem in the rice industry, Seeraj said that Guyana was expected to sign the contract for the delivery of rice and paddy with Venezuela weeks ago. The Spanish State is the largest and most lucrative market for Guyana rice and paddy.
With the passing of President Hugo Chavez, signing of the contract stalled until after the election of a new President for Venezuela. Chavez’s handpicked successor Nicolas Maduro’s was elected as Venezuela’s new President.
Maduro’s Cabinet would soon be sworn in following which the agreement would be signed.
Seeraj said that Venezuela is offering US$520 ton per paddy and US$800 per ton rice of high quality products. Not to sacrifice this high price in the agreement, Guyana was not enticed at the beginning of the harvesting season to export its products to Europe for US$605 per rice and US$512 per paddy. The European market is still willing to take Guyana’s rice and paddy but has reduced its prices.
Meanwhile, Guyana’s rice and paddy exports to Jamaica, Guyana’s largest rice market in CARICOM has been slow.
According to General Manager of Guyana Rice Development Board, Jagnarine Singh, who was at the press conference held at Red House but not part of the panel, in response to a question about seeking other markets stressed on how good the prices are that Venezuela offers Guyana.
He said that Guyana prefers to sell rice and paddy to the market with the best price.
According to Seeraj, the possibility of Guyana receiving a medium term contract—- possibly with five year-span-— has not been ruled out. He noted that at the beginning of negotiations the farmers had wanted a five-year contract but that was not offered.
The annual agreement with Venezuela does not usually interfere with the harvesting of the rice crop. He explained that agreement is normally crafted in December of the previous year; rice is cultivated early in the year and the signed contract would be ready for the harvesting season.
According to Seeraj, only 70 percent of the rice crop has been harvested thus far. The remaining 30 percent, though not threatened by the paddy bug infestation because of maturity, could be affected by heavy rainfall.
GRPA’s President Leeka Rambrich, Vice Chairman Bretnold Maynard, and Executive Member Bashir who were also meeting the press, painted a bleak picture of how farmers are affected, especially with their livelihood on the line, and are hoping that the situation will be resolved quickly.