Latest update November 21st, 2024 1:00 AM
Jamaican rice deal…GREMA hits Rice Board with High Court injunction
By Jarryl Bryan
In the wake of the controversial rice deal between Guyana and two Jamaican companies, Guyana Rice Exporters and Millers Association (GREMA) sought and were granted an injunction against the Guyana Rice Development Board (GRDB).
According to the particulars of the June 10th court order, made by Justice Dawn Gregory, GRDB must show cause why a ‘Writ of Certiorari’ should not be issued against it quashing the March 1st agreement with both Jamaica Rice Milling Company Ltd. and Musson (Jamaica) Limited.
The GRDB must also show why the terms and conditions set out in the agreement should not be deemed “in excess of jurisdiction, unreasonable, null, void and of no legal effect, contrary to the GRDB Act, Rice Factories Act and the revised Treaty of Chaguaramus.”
The order goes on to state that an order of Nisi of prohibition is hereby issued against the Rice Board, to which they will have to show why they should not be prohibited from acting in accordance with the terms and conditions of the contract.
The GRDB will have until June 24, when they are to appear before Chief Justice Yonette Cummings-Edwards, to present their case. Failing to obey the order, according to the writ, will see the legal processes being used against GRDB to compel their compliance.
The deals were signed back in May. According to the particulars of the agreement, both companies had reportedly agreed to import 80,000 tonnes of rice from Guyana during 2016. In a press release, GRDB had defended the deal.
The Rice Board had expressed confidence that the export of rice from Guyana would almost double in 2016. It was noted that in 2015, export of rice from Guyana to Jamaica was 48,000 tonnes.
GRDB General Manager Nizam Hassan
GREMA Chairman Rajindra Persaud
“The agreements seek to organize the supply of rice to the Jamaican market and prevent under pricing and under invoicing by suppliers,” it had stated. “The agreement allows the Jamaican companies to buy rice from licensed rice millers/exporters from Guyana. Minimum orders of 1,500 tonnes will be given to mills for export.”
“In addition to committing to import increased volumes of rice, the companies have also established a price schedule with the minimum price to be paid for white rice being US$ 400 per tonne.”
“Prior to the agreements, Guyanese exporters were receiving prices ranging from US$345 – US$ 370 per tonne. This means that Guyanese millers will earn an additional US$30-US$55 per tonne of rice exported to Jamaica, or an additional US$2.4 million – US$4.4 million annually.”
GRDB had also noted that with the increased price for rice, millers are expected to offer a higher price for paddy. According to the General Manager, for the first (spring) crop of 2016, some mills have been paying between G$ 2,200 (grade C) – G$ 2,700 (grade A) per bag of paddy.
The deal had nevertheless provoked a backlash from rice industry stakeholders, with several arguing against what they said was the secretive nature of the agreement and the content of the deal itself.
GRDB board member Jinnah Rahman had argued that by the time board members were made aware of the deal, it had already been signed with the Marketing sub-committee being bypassed.
GREMA had been vocal in opposing the deal, stating that despite the role they have to play in the process, they were not consulted. They had stated that what the deal in fact did was limit rice importation to Jamaica to those two companies.
They had also said that as the agreement fixed Guyana’s export price over that of the existing free market price, and Guyana could end up losing its share of the market to places like Suriname.
They had also argued that the agreement was anti-competitive to business, prohibited by Article 177 of the Revised Treaty of Chaguaramus. This assertion is one area of contention in the injunction.
Efforts to contact GRDB General Manager Nizam Hassan were futile.
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