Latest update February 14th, 2025 8:22 AM
US$15M Petro Caribe fund goes into Hope Canal
Months after Essequibo rice farmers were seeking an audience with the Minister of Agriculture and senior members of the Guyana Rice Development Board (GRDB) to sit and discuss the problems they face, yesterday
Former President, Bharrat in discussion with farmers and party supporters.
former President, Bharrat Jagdeo took the opportunity to have a open discussion with farmers and party supporters. The venue was a public meeting on the lawns of the State House at Anna Regina.
Jagdeo explained that for months now he had been hearing about the problems facing the rice industry. He added that marketing and early payments to rice farmers by millers have been two major issues facing the rice industry.
This, he said, is not new; it has resurfaced again due to the large quantity of rice Guyana continues to produce over the years.
“We can’t solve all the problems, we can’t ask everybody to buy our rice; there have been problems but we want to continue to work to address those issues.”
He said that while Guyana exported 500,000 tons of rice last year, exports have grown from $10M to a $250 million.
The former President said that when the Petro Caribe agreement was signed between Guyana and Venezuela in 2009, Guyana could have exported seventy percent of rice to that high price market, unlike the thirty percent which the country is exporting today.
He told his audience that the Petro Caribe deal came to fruition after he had discussions with the late Venezuelan President, Hugo Chavez, about a quantity of rice that Guyana couldn’t have sold. He said at the time he was the President of Guyana and was attending a meeting at the United Nations when he spoke to Chavez who directed him to Maduro, the then Foreign Affairs Minister. The conversation between Maduro and him, he said, was successful. It subsequently led to him striking a rice deal.
“I am hearing all kinds of claims; the fund was not open by chance. It was opened by a conversation. Farmers need to understand this.”
Jagdeo added that the Petro Caribe deal is open to other Caribbean countries and it was as a result of the fluctuation of oil prices.”Let’s say oil price is high, Venezuela said we give you some credit, this is for the entire Caribbean, while oil price is high.
While Guyana is not the only Caribbean country that has access to the Petro Caribe arrangement, he said that the other countries have been utilizing their loan. In Guyana’s case the money is used to finance rice purchases. The rest of the money is sitting in the Central Bank.
The former President said that US$15M from the loan was used to finance one single project—Hope Canal.
Jagdeo said that from garnering discussions with rice stakeholders, a new bidding system will be introduced. He stressed that the quota to the highest bidders will ensure faster payments. The line of credit in their account will ensure that paddy is purchased and also timely payments are made.
Special emphasis would also be placed on diversification, the development of a special fund with the interest to create new employment and in extreme cases to look at taking delinquent millers to court.
The former president was accompanied by Minister of Labour, Dr Nanda Gopaul; Minister of Water, Irfaan Ali; Junior Agriculture Minister, Ali Baksh; Region Two Chairman, Parmanand Persaud and Vice Chairman, Vishnu Samaroo.
Farmers vented their frustration about late payments, pricing for paddy, poor weight and the revision of the Rice Factories Act.
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