Farmers enjoying low cost urea- GRDB

Jan 05, 2014 News

GRDB to review arrangements with Venezuela

The Guyana Rice Development Board (GRDB)’s initial shipment of urea (fertilizer) from Venezuela is expected to be concluded by the end of the first rice crop of 2014. Following this, GRDB would be reviewing its purchase of fertilizer arrangement with the Spanish State, said Jagnarine Singh, General Manager of GRDB, yesterday.

Jagnarine Singh

Singh said that GRDB through the Ministry of Agriculture in November 2013 purchased 7,000 tons of urea from Venezuela. Of that amount, 2,000 tons were sold to the Guyana Sugar Corporation and the remainder to farmers. Thus far, in excess of 3,000 farmers have already benefited.
According to Singh, GRDB decided to purchase urea for resale to bring down the price of urea on the local market to match the international price. Since the presence of Venezuelan urea, on the local market private businesses have reduced their prices.
Singh said that previously private businesses used to retail a bag of urea for $7,500 but they have lowered their prices between $5,700 and $5,200 per bag. However, GRDB is selling a bag of urea at the breakeven price of $5,000.
He said that Guyana Rice Producers’ Association personnel are distributing urea in Regions Two and Three while GRDB are distributing in Regions Four, Five and Six.
Singh enlightened that this is the first time GRDB has gotten involved in such a venture. The body is using its own money to purchase the fertilizer from Venezuela. The money received from sales is reimbursed to GRDB accounts. The venture does not rake in much profit for GRDB since spillage occurs during the transportation phase, he said.
According to Singh, the initial agreement between Venezuela and GRDB provided for a 5,000-tonne quota. But, owing to the size of ship Venezuela sent an additional 2,000 tons of urea. GRDB will be reviewing its arrangement with Venezuela to ascertain if there is need to increase its imports and have shipments twice yearly.
According to a Wakenaam rice farmer, he recently purchased the urea from Venezuela and found it to be of a better quality. He would continue to purchase the urea if more is made available.