Rice Sector Performing at Unprecedented Levels

THE PPP/C Government has created the synergies to revitalize the rice sector after it had been practically driven into the ground (no pun intended) by the former PNC administration, with farmers having abandoned their rice fields in droves and, for all intents and purposes, completely gave up on rice production. Today, because of Government support and requisite reinforcement of adjunctive systems, such as drainage and irrigation, the rice sector is producing at unprecedented levels, with Government, through the Guyana Rice Development Board (GRDB) and the Guyana Rice Producers Association (RPA) expanding market share in a highly competitive international marketplace, boosting Guyana’s rice exports – also to unprecedented levels. This is according to General-Secretary of the Guyana Rice Producers’ Association and Vice-chairman of the Guyana Rice Development Board, Mr. Dharamkumar Seeraj.
This is being reiterated by the Chairman and General-Manager of the GRDB, Messrs. Badrie Persaud and Jagnarine Singh, in the entity’s 2013 Annual Report.
The two gentlemen asserted that GRDB has played a significant role in improving the rice industry over the years, and reported that the industry produced more than half a million metric tonnes of rice in 2013 – the first time in more than a hundred years of growing rice in Guyana.
They went on to inform that the research department has introduced new high-yielding varieties that are cultivated on a commercial scale throughout the rice sector, contributing to the high yields farmers are enjoying, with the direct benefit of lowering the unit cost of production, and consequently increasing profitability. This has encouraged farmers to increase their acreage and put more land under rice.
Reflecting on some major achievements of the GRDB, Persaud stated that after years of research, an aromatic rice variety was successfully introduced at nursery level, with efforts being pursued to develop it to commercial scale. The aromatic rice will be branded and sold as premium rice if successful at the commercial level.
Quality control is an integral part of the operation of the Board in an industry that is export-oriented. The quality control department ensures that all rice destined for export meets international standards by monitoring rice mills across the industry for compliance to quality standards.
According to Persaud, the Extension Services Department plays a crucial role in the transfer of know-how, best practices, and technology to rice farmers. He went on to list some of the services provided to farmers by this crucial unit of the GRDB.
He noted that the spring crop of Region 2 was devastated by the paddy bug, which led to the introduction of the Paddy Bug Management Unit, with the objective of conducting a comprehensive scientific study of the paddy bug in the Guyana rice industry to eradicate this most devastating pest.
The favourable Venezuelan market can be considered one of the driving forces in the rice industry in recent years. Guyana’s rice enjoys a higher price in this market compared to the traditional European and CARICOM markets. The sustainability of the Venezuelan market will be a key factor for the future of the local rice industry. Conversely, over-reliance on this market can pose a high risk to the industry.
In order to trade profitably at market prices around the world, the local rice industry will have to seek ways and means of reducing the cost of production. The GRDB has taken an important initiative in this regard by importing a shipment of 7,000 mt / 140,000 bags of urea fertilizer, which was sold to farmers at $5000 per bag compared to $7,000 per bag sold by traders. This intervention by the GRDB has benefitted the farmers by some 30% price reduction for one of the most important agrochemicals used in the industry. Such efforts will be sustained by the GRDB in their mandate to continue to assist farmers to reduce their cost of production.
Over the years, GRDB staff members have been sent on academic training at universities – both locally and overseas – ranging from diploma to PhD. levels. The entity will continue to invest in human resource development and continuously improve its cadre of personnel to discharge its responsibilities in a professional manner, to face up to the challenges of developing and sustaining a viable rice industry.
The rice industry has acclaimed 2013 as a highly successful year, with production and exports surpassing targets. Production for the year is recorded as 535,555 mt of rice, 30% above the targeted amount of 413,031 mt. This is an increase by 27% over last year’s production. As Seeraj said, and reiterated by Singh, for the first time in history Guyana’s rice production has surpassed half a million tonnes.
Exports have also surpassed the targeted 394,988 mt of paddy, rice and rice products, as compared to a projected amount of 326,100 mt and an actual export of 334,140 mt for 2012. The value of exports is also the highest in the history of the industry, and, as at the end of the year it was US $293,826,389. This is 31 % higher when compared with the budget amount of US $ 170,922,000, and 15% increase when compared with the actual value of US $196,266,960 for 2012 exports.
According to Singh, the combined efforts of all the stakeholders have made this phenomenal success possible and he extended plaudits to all who contributed to this unprecedented achievement in the sector. However, he singled out the farmers, whom he said have demonstrated remarkable resilience in the face of bad weather conditions, including floods and extended dry periods, and high levels of paddy bug infestation during the first crop. He commended them for having exemplified the dedication and commitment necessary to enhancing and fostering the development of the industry, which he asserted cannot be over-emphasized.
In addition to selling rice to “premium priced” markets, claims Singh, the industry has to continue to manage the cost of production, as Guyana needs to see the “Far East” as its major competitor in the future.
Singh said, “As we continue to strive to achieve increased yields, thus reducing the unit cost of production, we would have imported some lower price urea. GRDB, with the approval of the Minister of Agriculture, imported some urea fertilizer under the Petro Caribe arrangement. The selling price to the farmers was $5,000 per bag, a reduction of more than $1,500 per bag from the previous crop. This is a significant saving to the farmers. In addition to the cost management, we will have to work on promoting more value added products, and in 2014 we plan to aggressively pursue this.
“During the year, we would have seen the re-certification of the GRDB Central Laboratory at Head Office by the Guyana National Bureau of Standards and we are working with the Caribbean Regional Organization for Standards and Quality (CORSQ) to be accredited to ISO: 17025 (General Requirements for the Operations of a Testing Laboratory).”
The four high-yielding rice varieties (GRDB 09, 10, 11, and12) that were released by GRDB in 2011 and 2012 have gained countrywide acceptance by farmers who have already occupied more than 50% of the total cultivation acreage by the second crop of 2013. The most dominant variety in the country is GRDB 10, which occupied 35% of the national acreage. During the year, another rice milling company began producing and marketing the Guyana Aromatic Rice.
The GRDB Extension programme continues to have increased success as the combined GRDB/RPA strive to improve productivity in the industry. Fifty seven Farmers’ Field Schools were established throughout the country, with 965 farmers participating in the sessions. Approximately 800 brochures were distributed to farmers to complement the training.
Training of staff at GRDB continues to be one of the major focuses as that entity strives to improve the technical services offered by the Board, with two staff members pursuing PhD, three their MSc, and three their BSc. According to Singh, the Board is not just seeking to improve the physical infrastructure, but is also ensuring that its human capital is enhanced.
The success of the rice industry is a microcosm of Guyana’s developmental trajectory during the stewardship of the PPP/C Government. This phenomenal success being achieved in the rice industry can be replicated in all the sectors in Guyana’s developmental paradigm if major transformational projects are not continually being stymied by the combined anti-nationalistic, anti-developmental Opposition parties.

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