Rice Producers call on Gov’t to come clean on $23B allocation

Sep 01, 2015 News

–money was expected to go towards paying rice farmers
Following accusations from the People’s Progressive Party/Civic (PPP/C) Members of Parliament that in excess of $23B promised in the government’s budget for 7,000 plus rice farmers was left out of the budget estimates, there has still been no official explanation from the Government.
PPP/C MP and General Secretary of the Guyana Rice Producers Association (GRPA), Dharamkumar Seeraj, and Co-Chairman of the Rice Producers Association/ Action Committee (RPA/AC) Jinnah Rahaman, called for more openness and transparency on the issue, stating that it was something that must be cleared up.
Minister of Finance, Winston Jordan on Friday last, declined to comment on the situation. He said that the matter had already been discussed.
A Partnership for National Unity/Alliance for Change (APNU+AFC) side of the house was first confronted with the issue during last week’s sitting of the National Assembly, but did not offer any explanation.
Seeraj stated that contributions to local agricultural organizations, including Guyana Sugar Corporation (GUYSUCO), were observed in the estimates, but there was nothing under the Guyana Rice Development Board (GRDB). Nor, Seeraj observed, were the allocations under the Ministry of Agriculture.
In view of this, the Parliamentarian noted that the Government should lay its cards on the table as it is.
According to the General Secretary, GRPA was not a budget agency and the money was for paying rice farmers. He also stated that there were expectations that the money might fulfill the APNU+AFC campaign promises to rice farmers of at least $6000 per bag of paddy.
During the examination of the budget estimates, allegations had also been leveled by the Opposition that no money had been allocated for University of Guyana student loans. On that occasion, however, the Finance Minister had defended the omission.
He had explained that for the first time since its inception, the agency’s revolving fund had accumulated enough money to cover the University payments; hence, there was no need for the Government to allocate cash in the estimates.
Over the past few years, there has been a growing outcry from rice farmers, who would have sold tonnes of paddy to millers, but in many cases have been forced to wait in excess of the 42 days prescribed under the Rice Factories (Amendment) Act.
Under the Act, it is illegal for millers to withhold payments to rice farmers in excess of 42 days after delivery of the produce. Failing to do so makes the miller liable by law to pay farmers interest that is two per cent higher than the going interest rate of the Bank of Guyana.
However, there has been much controversy within the industry, the latest being a directive issued by the Government to millers to take back nearly 300 containers of rice and paddy originally destined for Venezuela, after Venezuelan rice officials ordered a halt to shipments. The millers were also instructed to sell the rice on alternative markets.
This directive was said to have been issued after Guyana exceeded the shipping patterns to the oil producing country.
However, the situation did not go down well with millers and has since led to a lawsuit being filed against the GRDB by a private miller.

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Rice Producers call on Gov’t to come clean on $23B allocation

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