Mexico ups Guyana paddy quota; now taking rice too

Mar 02, 2018 News

Paddy shipment to Mexico about to leave Guyana last July.

Despite the 2015 market loss with Venezuela, Guyana’s rice market is continuing to show signs of stability.
This week, Mexico, an entirely new market, has agreed to continue taking more rice and paddy from Guyana.
In fact, there was a meeting on Wednesday between officials of the Guyana Rice Development Board (GRDB) and the Mexican Ambassador, Ivan Roberto Sierra.
It has been agreed that the Mexican market quota will be increased from 130,000 tonnes to 150,000 tonnes with either rice or paddy that can be shipped.
The new agreement, Kaieteur News was told, is valid to the end on 2019.
This means that this year, Guyana has the possibilities of exporting up to 150,000 tonnes of rice with a similar amount that has to be supplied next year.
Chairman of the Guyana Rice Millers Association, Ragindra Persaud, who is also co-owner of Nand Persaud and Company Limited, when contacted, said he believes this latest approval with Mexico as an emerging market has huge implications for Guyana.
“It is a major game changer for rice in Guyana. We have been looking for new markets. It also creates further demands- of course a boost to our farmers- and help stabilise price locally and boost exports.”
With price still to be recommended for this crop, farmers were receiving around $3,000 per bag the last crop.

Chairman of the Guyana Rice Millers Association, Ragindra Persaud

“Millers would like to see this arrangement put into a more long-term and permanent arrangement at the bilateral level. We have the opportunity and the time to act is now to secure our markets.”
Persaud’s company, on the Corentyne, the producers of Karibe Rice, is one of the biggest buyers and millers in the country.
That company is also leading the charge with the renewed Cuban market. It initially had a 15,000 tonnes rice contract starting last year.
Cuba has now signaled its intention to take up to 30,000 tonnes.
Guyana was left shaky in May 2015 when the Coalition Government entered office and Venezuela, angry at an oil find in Guyana waters, ended a lucrative rice-for-oil deal that had been in force for over five years.
Guyana was left with excess rice and paddy with Government sending out teams and millers taking steps to find new markets.
Mexico, which has a population of over 127 million, last year announced it wanted rice and paddy.
A number of countries, including Guyana, jumped at the offer.
Rice production has been growing in leaps and bounds in recent years, as farmers invested in better strains of seed paddy and more lands for cultivation.
Guyana’s rice production topped 600,000 tonnes last year, a 12 percent increase from 2016.