Selected RPA recommendations for rice industry being mulled

Dec 28, 2015 News

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The Guyana Rice Development Board (GRDB) is studying several recommendations made by the Rice Producers Association (RPA), aimed at lowering the operating costs of rice farmers.
It is understood that these recommendations have been forwarded to the Minister of Agriculture, Noel Holder, for approval.
The ideas had formed part of a nine point proposal that was sent to the Ministry of Agriculture back in November. These recommendations also formed the subject of discussion at the board’s recent meeting and following that meeting, a decision was reached to forward the proposals.
According to reports, from that list, members of the GRDB board have identified the best options offered in the plan, which can be implemented to provide relief for the rice farmers. Farmers have complained and even protested throughout the year in an effort to garner support from government.
The aspects that the board has identified, from the plan, are the ‘removal of taxes and duties on fuel, and inputs for the industry.’ This is inclusive of the taxes and duties on all spare parts, machinery and agriculture equipment.
The board has also identified the recommendation calling for a minimum export price for rice and paddy to be set. The recommendation calling for authorities to intercede with the Bankers association to address loan payments was also highlighted.
And the final recommendation that was flagged by the board was the reduction of export commission on paddy and rice, in the expectation that the benefit would come down to the farmers.
Meanwhile, the other recommendations that formed part of the nine point proposal were for negotiations to reopen between Guyana and Venezuela. This recommendation was aimed at reestablishing the Guyana/Venezuelan oil for rice deal, which came to an official end in November.
Under that agreement, Venezuela had purchased rice from Guyana at concessionary prices, while supplying Guyana with oil. Venezuela has huge oil reserves and had offered similar deals to other regional countries.
However, Venezuela’s deal with Guyana came to an end on November 16th and was not renewed.
Another recommendation from the nine point plan was to suspend payments, which farmers have to make for land leases, drainage and irrigation charges. There had also been recommendations for a supplementary provision in parliament to provide financial support for farmers, to help them in purchasing seed paddy and fertilizer.
Given the platform to make their concerns heard at the National Rice Industry Conference, earlier in the year, many farmers have taken the position that Guyana’s rice industry has become too costly to justify their investment. Farmers have also been calling for the very recommendations now being forwarded.
Some farmers have put their cost of production at approximately $150,000 per acre, out of which they garner significantly reduced returns.
One farmer, when asked about the interventions needed, had declared that something the Government must do, was to facilitate a guaranteed price of $3000 and over for paddy. Anything under, he said, and rice farmers could not survive.
There had also been calls for the Government to subsidize the price of fuel to farmers, in addition to the removal of duties on manure.
Another farmer had made it clear that millers and the rice industry depend on the farmers and their output. He had stated that more can and should be done for farmers.
“It goes hand in hand. If your famers can’t produce, there would be no millers.” He said.
“We are at a new period in this country where we have to relook things, not just keep things that we acquired sometime in the past. It’s all about making life for the farmers easier.”
The People’s Progressive Party (PPP) has also laid into the issue, with their Member of Parliament, Irfaan Ali, coming down heavily on the administration for not implementing the recommendations.
During a press conference in late November, he had accused government of not making known any plans for fertilizer and fuel subsidies and related assistance.
He had also declared that money was not circulating in rice growing regions, in particular Region number two- Pomeroon/Supernaam. He had contended that the main economic driver of the region is rice and farmers are not returning to the fields.
“In relation to the farmers continuing into the next crop, it requires more capital investment for a portfolio that had (no) returns in the last crop,” Ali had said. “So what is the reaction of the farmer? The reaction is that many of them are not going into this crop.”

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