ORYZA Global Rice Quotes, a recognised information source on rice market trends, reported at January month-end that the sole rice mill in Jamaica completely replaced imports of paddy rice from the United States of America (USA) with those from Guyana in 2013.

And Head of the Guyana Rice Producers Association (GRPA), Dharamkumar Seeraj, told the Guyana Chronicle that the local marketing thrust is focused on dislodging the USA as a supplier to the Caribbean Region.

He said, “Our quality and quantity have improved significantly as a result of technology and better agronomical practices, and we have the capacity to supply the Region. If we can dislodge the US as a supplier, it will be good for Guyana and local rice farmers.”

According to the Oryza report, the United States Department of Agriculture (USDA) has said that, for the first time in recent history, Jamaica did not import any paddy rice from the USA in 2013.

Traditionally, Jamaica’s rice imports consist of 20 per cent of the USA paddy rice, but the share of USA paddy rice in Jamaica’s rice imports has been declining in the last five years.

The USDA said Jamaica’s total rice import market remains steady at about 90,000 tonnes. However, the USA paddy rice imports by Jamaica declined by a whopping 93 per cent, from approximately 46,000 tonnes in 2008 to a mere 3,300 tonnes in 2012, and have vanished in 2013.

Imports from both Guyana and Suriname receive preferential treatment under the Common External Tariff (CET) for Caribbean Community (CARICOM) countries, and the CET on rice for non-CARICOM countries is 25 per cent, thereby making imports from non-CARICOM countries comparatively expensive.

MARKETING
At the beginning of February 2014, Seeraj confirmed that there is still approximately 100,000 tonnes of paddy from the last crop of 2013 waiting to be sold.
Seeraj said, “When we were producing just over 300,000 tonnes, Venezuela accounted for over 60 per cent of our exports. Now we have gone past that mark, with over 500,000 tonnes, of which only 30 per cent was exported to Venezuela.”

He added that this is where aggressive marketing efforts come in to secure new markets for Guyana’s rice. The RPA Head said Guyana is looking to increase its shares in existing markets as it simultaneously continues talks with new markets.

In a prior interview, Agriculture Minister Dr. Leslie Ramsammy said a three-pronged approach is being taken to increase exports in the sector: increasing the market share in countries that have agreements with Guyana; re-entering old markets, where the country once had a meaningful presence; and securing new markets. Dr Ramsammy added that efforts are underway to have Venezuela, Jamaica, Trinidad and Tobago, as well as countries in Europe, review existing agreements governing paddy and rice exports emanating from Guyana.

Minister Ramsammy explained that the Caribbean countries and Venezuela currently import rice from other countries besides Guyana, but there is an opportunity to secure greater shares in these existing markets.

He pointed out that in the case of Haiti, since the earthquake that devastated that nation’s capital, much of the rice entering the country has done so in the form of aid; but with the country in a position to purchase its own rice, Guyana can take advantage of this market.

REGIONAL TRADE
Last January, Finance Minister Dr. Ashni Singh stressed in an exclusive interview that Guyana has secured recognition as the “agriculture and food capital” of the Caribbean. He made it clear that once the impediments to trade are addressed, both the Region and Guyana’s trading partners stand to benefit.

Singh said, “We can produce all the food that is required to meet the food import bill of the entire CARICOM. Indeed, Guyana has positioned itself as the agricultural and food capital of the Caribbean; we have the potential to produce the food and meet the need. Once more concerted efforts are made to address the impediments, the Region will be much better placed to realise its potential, as will individual member states.”

The Finance Minister also noted that the trade impediments are institutional as well as infrastructural. Dr Singh said: “Until these impediments – such as the issue of inefficient transport infrastructure – are addressed, the Region will struggle to realise its potential. Addressing this major impediment to trade should be a focus of prioritised efforts of regional policy-makers. For example, the Jagdeo Initiative underlines some priority actions that are needed to accelerate regional trade.

“Some of the impediments are more easily addressed than others, such as improving and regulating the legislative and regulative framework to facilitate trade; but the transport infrastructure needs attention.”

He added there is absolutely no doubt that trade opportunities in CARICOM “abound”, and that Guyana can, and should, be taking advantage of this. Dr Singh said, “Guyana has been a committed member state when it comes to improving regional enterprise.”

He stressed the benefits of improved regional trade: “Trade is good for both parties, contributing social and economic goods; which is why people engage in trade, because it is in their mutual interest to [so] do,” he stressed.

The minister added that Guyana’s private sector has done well in increasing shares in regional and extra-regional markets.
Written By Vanessa Narine