Rice production cost not competitive — remove duties on spare parts, Seeraj urges
PPP MP Dharamkumar Seeraj
PPP MP Dharamkumar Seeraj

By Tajeram Mohabir

AGRICULTURE Minister Noel Holder has said that while Guyana has the ability to produce a high volume of rice, the cost of production impedes this country’s ability to compete.To overcome this hurdle, he said, the Guyana Rice Development Board (GRDB) has been focusing heavily on research and extension. Research focuses on plant breeding, agronomy (soils and weeds), pathology, entomology and seed production; while ‘extension’ promotes conditions for access and transfer of improved rice varieties, and crop management practices for farmers.

PPP Member of Parliament (MP) Dharamkumar Seeraj, who had spoken before the minister during the budget debates, had criticised the low cost for paddy and had blamed the Government for the situation.
He told the House that, during the last elections campaign, Government had given the impression that it had all the answers for the rice industry, but the situation is turning out to be different.

Seeraj said that what he is seeing now, instead of improvements, is a drop in rice price production and ‘too much green garments’ about the place.

Agriculture Minister Noel Holder
Agriculture Minister Noel Holder

The PPP MP, who is also President of the Rice Producers Association (RPA), was quick to point out that he likes the colour green, but believes that many are not wearing it voluntarily.

Seeraj stressed that, in Guyana, rice is not doing well. He pointed out that while this country had exported more rice in 2015, it had earned less for its exports. This situation, he noted, was exacerbated by the El Nino weather condition, which has been taking a toll on farmers. To relieve some of the stress on the people feeding the nation, the PPP MP urged, duties on agri-vehicle spares should be removed, and the price of diesel should be further reduced.

“It will be a short-term investment with long-term benefit,” the RPA head said.

He opined that much is not being done for the rice industry, and the much-touted Mexican market appears to have fallen through.

STOP PLAYING POLITICS
But Minister Holder called on Dharamkumar Seeraj to stop playing politics, and to play a role in helping to fix the challenges facing the rice industry.

The minister explained that the Mexican market has not been lost, as that country is very much interested in buying rice from Guyana, since its officials are dissatisfied with the supplies received from the USA. Rice has also been heavily affected by the current El Nino conditions.

“The lack of water is the main reason we will be experiencing an 8.4 per cent decline in the industry in 2016,” Minister Holder declared. “For instance, in Spring Crop 2015, hectares sown were 97,628ha; however, as at February 1, we have only sown 73,337 ha. This represents a decline of 33 per cent. For the areas that are heavily affected, we have the NDIA [National Drainage and Irrigation Authority] and the MMA-ADA [Mahaica/Mahaicony/Abary—Agriculture Development Authority] working assiduously to overcome these extraordinary obstacles,” Minister Holder said.

On marketing, the minister said that trade will be a key element in the sustainable development of the rice industry.

At the Rice Conference held in July 2015, Minister Holder had implored all millers and exporters to collate their efforts and partner with the Government to find and sustain markets. The Government, he said, will continue to make investments that are necessary to fully support the agriculture sector. Guyana has been exporting rice on a consistent basis for over 100 years.

“Mr Speaker, in continuing the export growth that the rice industry has experienced over the past five years, existing markets will be maintained whilst new markets will be pursued,” Minister Holder declared. “A new market for paddy is being pursued in Mexico, whilst additional markets for both paddy and rice are being pursued in Europe and other countries.”

Some good news has also emerged in regard to Guyana’s first specialty rice – Aromatic Rice. After introduction on the domestic market, Guyana is now preparing to trade this high-priced product on the international market. Aromatic rice is currently being traded at between US$700 and US$1200 per tonne, as compared with regular rice being traded at between US$350 and US$450 per tonne.

“This could very well carve the future direction for rice production and trade for Guyana, as it has a significantly higher market price,” Minister Holder has said.

 

 

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