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$2B in rent from Region 6 rice land slipping out annually – PM representative
Concerns are being raised by a senior Berbice official over the renting of rice lands by overseas-based lease owners.
The situation is currently placing hardships on the lives of farmers who are renting.
The PM’s Representative in Region Six, Gobin Harbhajan
It was never the intention that the lands should be rented in this manner with Guyana losing millions of dollars through taxes and foreign currency being purchased.
On Friday, Regional Representative of the PM’s Office, Gobin Harbhajan, said that despite the hardships faced by rice farmers, this year has been a good one for prices.
Harbhajan, also a councillor for Region Six, disclosed that prices have improved from around $1,800 per bag for paddy to an average of $3,000.
“This has caused a tremendous boost for our rice farmers who are expected to increase their rice cultivation to over 65,000 acres for this crop alone in Region Six.”
However, there are problems. A scarcity of lands has seen hundreds of persons who reside overseas now renting their lands. It is big business now.
“Most of the ‘landlords’ reside overseas and at a rate of $15,000 to $18,000 per acre this will amount to more than $2 billion per year being remitted abroad.”
According to the official, this money is tax-free, since the Guyana Revenue Authority (GRA) has no way of capturing this capital flight.
“It is important to note that this rental fee is approximately 15 percent of the cost of production of rice. These monies are normally paid in advance so the rice farmers must fork out these large sums even though they have not harvested as yet. Our Constitution says that land must go to the tillers but the tillers in this country are landless.
“There is a very huge market for Guyana’s rice and this demand can be met if more lands are available,” Harbhajan said.
Farmers are also facing other major challenges- including the damage to paddy by disease and insects.
“Damage to paddy results in poor quality, weight loss and lower prices;” this can negatively affect the farmers’ profit margin by as much as 15 percent. A small-scale farmer can experience a loss instead of a profit,” the official said.
“So it is the train of thought that if these can be reduced, the rice farmers’ profits can be improved by that much.”
The PM Representative also believed that politics has impacted the development of the rice industry.
“Politics can take a toll on agriculture as it has always done. Rice should remain as a business and not be a political football as with what has happened to sugar. This scarcity problem can be resolved by opening of new agricultural lands.”
One of the ways, this can be done is the construction of an all-weather road at the Number 58/59 area.
“This all-weather road, that I had proposed in 2016 can make over 100,000 acres of arable land immediately available for farmers. This will open a whole new frontier similar to Black Bush Polder. There will be opportunities for rice, cattle, coconut farming and cash crop farming.”
Harbhajan said that he invited the Agriculture Minister, Noel Holder, who has been visiting the region regularly.
“The Black Bush Polder and other rice cultivation plan throughout Guyana were envisioned and created by the PPP in the 60s under the late Dr.Cheddi Jagan to ensure that land goes to the tiller. It was intended that the land will continue to benefit future generations but what has happened now is that the present generation who have inherited these land have become expatriate ‘landlords’ who sit comfortably in their luxurious homes abroad and collect billions in rental.” On the other hand, he said, the real farmers have to sweat and toil for long hours facing the numerous economic and social challenges just to eke out a living from the rented land.
“To add insult to injury, these expatriate ‘landlords’ are now holding the rice farmers at ransom demanding a one-third increase in rent.”
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