Latest update April 1st, 2025 5:37 PM
Venezuela rice deal signed…Guyana courts African states to take off surplus
As worry mounts by a number of farmers in Essequibo and Berbice over late payments from last year, the Guyana Rice Producers’ Association (RPA) is advising that millers pay $3,000 per bag of paddy for
Guyana has a new deal for 200,000 tonnes of rice and paddy this year. A number of African countries are being courted to take off a similar account.
the upcoming crop.
This comes even as news that Guyana is negotiating with a number of African states, to take off almost 200,000 tonnes of rice.
According to RPA yesterday, the Guyana Rice Development Board (GRDB) and its counterpart in Venezuela on Wednesday signed a new annual agreement, which will see almost 200,000 tonnes of rice and paddy being taken off.
There has been worry that Venezuela would have backed down from a new deal after several shortages and political turmoil in that country. Venezuela is also angry with Guyana over current drilling activities by a US oil exploration company in disputed waters.
“With this in mind, the RPA is of the strong view that the millers and exporters should pay an average price of $3,000 for a bag of paddy for the present rice crop,” the association urged yesterday.
The association, which is the largest rice farmers’ body in the country, said that it also expects that suppliers to the Venezuela market can meet the $3,000 price, once they are allocated a reasonable quota to Venezuela for the duration of this contract.
With a dramatic increase in production in recent years due to high yields and more lands being ploughed, Government has been struggling to find markets for the extra rice.
Rice farmers have been jittery and calling for relief.
Last year, rice production topped 630,000 tonnes, the highest ever recorded.
According to the Ministry of Agriculture yesterday, it sealed the important Venezuela contract for this year on Wednesday.
The oil-for-rice deal will see shipments starting “soon” depending on the availability of vessels, the Ministry said yesterday.
“We are hopeful that the first shipment will be on March 21. Additionally, Guyana and Venezuela have also agreed for the procurement of 14,000 tons of fertilizer for 2015.”
In the meanwhile, arrangements are being concluded for the 2015 contracts with Panama.
“The two countries recently concluded arrangements to fast track payments. The financial accountability process of Panama involved Guyana making changes in how we invoiced our sales. After three months of negotiations we have been able to reconcile our systems for faster payments.”
Meanwhile, the Ministry said that Minister Leslie Ramsammy is currently meeting officials from several African countries. Guyana is hoping to sell more than 200,000 tonnes of rice to those African countries.
The news would come as farmers are agitating for outstanding monies from the late crop.
Yesterday was the latest in a series of protests hitting Anna Regina, Essequibo Coast There have also been protests in Black Bush Polder, East Berbice.
The first harvesting has reportedly started.
Under the Venezuela deal, that neighbouring country will take close to 200,000 tons of paddy and rice.
In 2014, exports to Venezuela accounted for about 34 per cent of the total production of rice in Guyana, the Ministry has said. It is expected that exports in 2015 will be about 30 per cent of production, even though the actual amount will be approximately the same.
This is because the country is expecting a bigger production in 2015.
According to the Ministry recently, together with increased export to the regular markets, newer markets in Central America and Africa will be added to the increasing destinations for Guyana’s rice.
This year, authorities are also predicting local consumption will see a dramatic increase.
Government is also hoping that more rice will be taken off with the opening of a rice cereal factory in Essequibo which is expected to be operational by the second crop.
In addition, a rice flour factory will become operational also by the second crop this year, the Ministry has said.
Last year, farmers sold approximately $44B in paddy to millers.
But as of last week, some $300M was owed to farmers from last year despite millers being mandated to complete payments within 42 days of delivery.
The 2015 value for paddy is expected to be between $45 and $50B with Government forecasting paddy production to surpass one million tons for the first time.
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