Gov’t’s instruction to millers to take back rice a “backward step” - RPA

Gov’t’s instruction to millers to take back rice a “backward step” – RPA

Aug 03, 2015 News

– has legal, economical ramifications

By Jarryl Bryan

Almost 300 containers of rice that were earmarked for shipment to Venezuela but were left sitting on a local wharf after Venezuela ordered a temporary halt to shipments, have been ordered back into the hands of millers by the Guyana Rice Development Board (GRDB).
This directive, which Kaieteur News understands was given last week, has seen millers having no other alternative than to take back their rice, but questions have been raised whether the price farmers are getting per bag would drop even lower than its current $2500 with the next crop expected in September of 2015 as millers will seek to recuperate losses.
General Secretary of the Guyana Rice Producers Association (GRPA) Dharamkumar Seeraj, has described this as a “backward step” on the part of the A Partnership for National Unity/Alliance for Change (APNU+AFC) Government.
According to Seeraj, the rice was handed over to the custody of the GRDB and for the GRDB to now instruct that millers take repossession of rice already subject to spoilage was very much against custom.

Dr. Turhane Doerga

General Secretary of the GRPA Dharamkumar Seeraj

Seeraj also stated that while some millers were contemplating legal action, as the ramifications were clear, there was some expectation that dialogue could be facilitated with the Government about this latest development, in an effort to reverse the decision and reach an amicable settlement.
Seeraj also noted that the rice had already been packaged and fumigated, in addition to being labeled for Venezuela. This, Seeraj pointed out, meant that the rice would have to be offloaded from the containers, transported to another facility which could be as far as Essequibo and repackaged, an operation that would cost millions. He estimated that for every tonne of rice that has to go through this process, US$280 to US$300 per tonne stood to be lost.
Co-chairman of the Rice Action Committee (RAC) Dr. Thurhane Doerga, also had harsh words for the decision, describing it as “dead wrong.” The rice, Doerga pointed out, had already been accepted by the GRDB, meaning that the rice board owed millers for that rice and thus had a legal obligation to pay for it.
Doerga also expressed the hope that the Government “wakes up and smells the coffee” as the next crop was due in just six weeks. With this move, the rice expert intimated, prices per bag were likely to go down as millers seek to recuperate losses in the next crop.

Rice being loaded into paddy ships

Farmers have been making it manifestly clear that the current price per bag of paddy was insufficient and well below what they spend in production. During the recently held rice conference at the Arthur Chung Convention Centre, where hundreds of farmers were addressed by President David Granger and Minister of Agriculture Noel Holder, the low price per bag of paddy was a foremost concern.
It had previously been reported that Venezuela had issued a directive for Guyana to cease all paddy and rice shipments to the country with immediate effect, four months before the PetroCaribe agreement/contract was scheduled to come to an end.
Venezuela’s decision regarding the rice deal had come at a time when it was claiming sovereignty over Guyana’s waters since the significant oil find by American oil giant, Exxon Mobil just 100 miles off of the Stabroek Block.
However, subsequent reports had indicated that Venezuela had only instructed Guyana to ‘slow down’ shipments to the oil producing country and return to the original shipping patterns. The Agriculture Minister had also provided assurances that the deal was not in jeopardy and that shipments had actually overwhelmed the Venezuelan rice officials, necessitating the directive.