Timely payments to rice farmers should be the norm

PAYMENT to rice farmers for their paddy on a timely basis by millers should be an imperative and this matter must be given the requisite and utmost attention because farmers play a vital role in feeding any nation as well as making a critical role in sustaining the national economy.

Farmers are extremely hard working people, make immeasurable sacrifices and undertake tremendous risks and investments toward the sustenance of this nation, and therefore it is terribly disappointing, unfair and heart-breaking that after having gone through all these trials and tribulation, they cannot receive their payments on time.

It should also be borne in mind that, in recent years, many rice farmers suffered heavy losses and setbacks through flooding and irregular weather patterns and therefore untimely payments will only add to their burdens and suffering and by extension their families. In addition, many are indebted to the commercial banks.

This state of affair has been plaguing rice farmers for many years. However, with the legal implementation of the Rice Factories Act which sets down specific conditions pertaining to timeliness of payments and other related issues, the situation improved significantly.

Nevertheless, this plague seems to be raising its ugly head once again and this is not a healthy development for the farmers, the rice industry and the national economy.

In this regard, the Rice Producers Association (RPA) is calling on the Mahaicony Rice Mills (MRM) to settle some $400M in outstanding payments to farmers throughout the country for the last spring crop.

RPA General Secretary, Mr. Dharamkumar Seeraj, told this newspaper that while the MRM is yet to pay farmers for that season, it has been purchasing cement and fertilisers for other purposes.

He pointed out too that the company is in the habit of selling the fertilisers to farmers it owes, instead of paying them; and this too at an exorbitant price.

Seeraj said this scheme is intended to tie farmers to MRM by trying to get them to be committed to re-sell their paddy to that mill.

The RPA General Secretary stressed that even though there is legislation in place to deal with defaulting millers, it should be revised to guarantee farmers are paid within six weeks.

The MRM earlier this year was heavily criticised by the RPA for owing farmers some $600M in payment for paddy for the autumn crop of last year.

But Seeraj said in June/July the company cleared outstanding payments to farmers for the autumn crop but is yet to do the same for this spring crop.

MRM, the largest single entity in the local rice industry, purchases about 35 per cent of the total amount of paddy produced and at times account for in excess of 35 per cent of exports.

The company has operation in Regions Two (Pomeroon/Supenaam), Five (Mahaica/Berbice) and Six (East Berbice/Corentyne).

This issued must be pursued vigorously by all stakeholders who should leave no stone unturned to bring resolution to this outrageous injustice to our hard working and dedicated rice farmers.

Those who are guilty of owing the farmers should understand how critical the rice industry is to the economy of this country and survival of thousands of Guyanese.

Furthermore, they should recognise the interdependence and symbiotic relationship between the rice farmers and millers and the effect of this relationship on the entire industry, and therefore should not engage in activities that could hinder or even undermine the industry.

This is a time when all stakeholders should work in unison towards exploiting the excellent international market conditions for rice.

One of the best ways of boosting the industry is by ensuring that timely payments to rice farmers become the norm.

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