Inquiry into rice industry needed to fix problems – APNU

Jul 12, 2014 News

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Parliament’s largest Opposition bloc, A Partnership for National Unity (APNU), is calling for an inquiry into the rice industry, following a fiery day of protests two Fridays ago that ended with tear gas and 20 persons charged.

During a press conference yesterday, APNU, which controls 26 of the 65-seats in the National Assembly, says the rice industry is now a major focus of its worry.
“APNU has received numerous complaints from paddy farmers. These complaints indicate that there are sufficient grounds for the PPP/C Administration to convene a Commission of Inquiry to inquire into the impediments to the efficient management of the industry and to make recommendations for the improvement of the livelihood of the nation’s paddy farmers. APNU calls on the PPP/C to do so without delay.”
Essequibo farmers started a peaceful protest two Fridays ago over monies they say were still owed to them by millers, months after the first crop was sold. However, the protests between Anna Regina and Land of Plenty turned ugly after farmers continued their actions late into the night. Shortly after midnight on Saturday, police fired tear gas into the residential area of Land of Plenty after clashing with the protestors.
Nineteen persons were arrested as persons complained of the tear gas.
On Tuesday, Chairman of the Essequibo Paddy Farmers Associations, Naith Ram and 19 others, including a prominent rice farmer, appeared at the Anna Regina Magistrate’s Court charged with riotous and threatening behaviour, among other things.
Farmers insisted that they were owed in excess of $1B from millers and that Government and regulators are not doing enough to ease their plight.
The country last year broke production records with rice going pass the 500,000 tonnes mark.
Farmers are now worried about finding markets for this extra rice that they are producing. Many farmers have also been switching from cash crops and cattle rearing to rice, in anticipation of good prices. However, prices have been hovering just around $3,200 per bag of paddy.
According to APNU yesterday, farmers’ “predicament” cannot be ignored any longer.
“This was the fifth protest by paddy farmers this year. Protesting paddy farmers had converged on the precincts of the National Assembly last year to meet APNU and AFC parliamentarians. They delivered a petition of over 1,000 signatures to the Minister of Agriculture requesting him to ensure prompt payments are made for their paddy.”
APNU said that it is aware of the importance of the rice industry which is spread over five coastal regions – Pomeroon-Supenaam; Essequibo Islands-West Demerara; Demerara-Mahaica; Mahaica-Berbice and East Berbice-Corentyne.
“The industry provides employment for at least 20,000 who depend directly on it for their livelihood and, indirectly, for another 40,000 people in related occupations. The industry contributed about five percent of the Gross Domestic Product (GDP) in 2013 and accounted for more than US$240M in export earnings. The industry depends on paddy farmers.”
APNU pointed out that it is the PPP/C administration that exercises control of the industry through the Ministry of Agriculture, the Guyana Rice Development Board (GRDB) and the Guyana Rice Producers’ Association (GRPA).
“It must, therefore, bear full responsibility for the current and chronic chaos affecting it.”
Some of the most serious issues facing paddy farmers include payment problems.
“The basic issue is that of under-payment, non-payment or delayed payment to paddy farmers. The GRDB’s duty is to ensure that paddy farmers are paid within 42 days of delivery. The GRDB is empowered to intervene and initiate legal action against delinquent millers. The GRPA, also, is aware of this problem. Paddy farmers who are not paid promptly face high interest rates at the banks for their loans, high costs of fertilizers and delayed purchase of seed paddy. Some have suffered from poor pricing and post-dated cheques from millers.”
The Opposition body also noted issues of marketing.
“Guyana’s multi-billion dollar, PetroCaribe ‘rice-for-oil’ agreement with Venezuela has fuelled increasing production. It has also fuelled fears that farmers could be left with large surpluses that could push down the price of paddy being offered. It has ignited anger over the management of this trade initiative which is generating wealth for a few.”
APNU said it found that millers in some areas of high production have lowered their prices, forcing paddy farmers to sell at reduced prices because of limited storage capacity.
“Production problems… Paddy farmers in the higher lands on the Essequibo Coast, affected by the inability to readily access water through the Tapacuma Irrigation Project – TIP – complain of having been forced to purchase water at a high rate of $6,000 per acre to sustain their crops in addition to having to pay land rental.
Paddy farmers in West Berbice also have faced problems from the Mahaica-Mahaicony-Abary – MMA – project. Farmers have also been plagued by an infestation of insects. Paddy-drying facilities are essential for, without them, paddy must be moved almost immediately to the mills to avoid damage to its quality.”

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