Rice farmers unable to cope with increase in price of fertilizer - Call for removal of VAT, granting of fuel subsidies

Rice farmers unable to cope with increase in price of fertilizer – Call for removal of VAT, granting of fuel subsidies

Jan 19, 2019 News

Rice farmers are calling on the Government, in light of the added burden to irrigate fields emanating from the dry spells, and increases in prices of fuel and lubricant, to grant fuel subsidies. They also want the removal of the Value Added Tax (VAT) on fertilizer and pesticides, which they insist would be a form of financial aid given to them to improve their sustainability and their remaining competitive in the industry.
Paddy farmers recently alluded to price increase of Urea 46-0-0 fertilizer by some $800 per bag, as imposing severely on their ability to make the necessary input in fields. In addition, VAT has already been applied to pesticides, and all other facilities necessary for rice production, which the farmers say will make it a non-profitable business if they too are continuous.
Kaieteur News went to Crane on the West Coast of Demerara, where several farmers, while discussing other matters related to rice production, said that they were familiar with the important role that the media plays in highlighting their plight.
“If government pull off the VAT from fertilizer and subsidize fuel cost, we can buy the full amount of fertilizer and apply. Right now as it stands, we pay VAT on fuel, grease, tyres, oil, tools and spares, which is an enormous burden on us. The price we get for paddy was graded for the 2018-second crop, which is a real blow to us. Fuel on the world market has dropped, and the effect is not equal here in Guyana.”
Relative to Trinidad & Tobago gasoline price is 0.85 USD, Suriname 0.92 USD, while Guyana currently is 1.09 USD per litre.

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