The Mahaicony Rice Mills (MRM) has failed to honour its commitment to pay off farmers all outstanding money owing to them by September month end.

Early last month, at a media briefing, Agriculture Minister Robert Persaud said MRM had assured him that urgent steps will be taken to clear its indebtedness to farmers for the 2009 first crop before harvesting of the second crop commences.

But this is not quite so, according to Rice Producers Association (RPA) General Secretary, Mr. Dharamkumar Seeraj who recently spoke with the Guyana Chronicle.

Seeraj told this newspaper that even though the company has been making steady payments to farmers, it has not yet completed payments to those in Regions Five (Mahaica/Berbice) and Six (East Berbice/Corentyne).

He disclosed the MRM still owes Region Five farmers about $ 30 M and their colleagues in Region Six, around $ 65 M.

The top RPA official however remained optimistic that the company will settle the outstanding sum early next week.

The company has already paid off outstanding money due to farmers in Regions Two (Pomeroon/Supenaam) and Four (Demerara/Mahaica).

Persaud had said MRM explained that, because of the global financial crisis, it has been experiencing some difficulty in accessing inflows from overseas sales.

He also warned MRM that, if it does not honour its pledge, the Guyana Rice Development Board (GRDB) has the power to make certain interventions as a last resort.

Meanwhile, President Bharrat Jagdeo has recently announced that the Government has set aside $400M to offer short term relief to the rice industry.

The RPA was mandated to consult with rice farmers throughout the country and come up with a strategy on how the money should be spent.

Speaking about the consultation, Seeraj reported that farmers so far have suggested that the Government use the $ 400 M to purchase fertiliser and sell the commodity to them at a cheaper price.

He noted they have also proposed that the Government use the money to construct storage and drying facilities in all the rice growing regions.

The latter, Seeraj stressed, would cost in excess of $400M but will allow farmers to store their paddy and negotiate with millers for a better price