Agriculture Minister Robert Persaud has said Mahaicony Rice Mills (MRM) has assured him that all outstanding payments to rice farmers for 2008 will be honoured immediately.

Speaking with reporters at a recently convened meeting at his ministry’s Vlissengen Road office, Persaud said the company has also given a commitment that urgent steps will be taken to clear all outstanding monies to farmers for this year’s first crop.

Guyana Rice Development Board (GRDB) General Manager Mr. Jagnarine Singh, Rice Producers Association (RPA) General Secretary Mr. Dharamkumar Seeraj, MRM General Manager Mrs. Taramatie Ghanie and Demerara Bank Assistant Manager for Corporate Credit and Risk Management Mr. Andre Lam were also at the meeting.

The Minister pointed out that the meeting with these officials was to obtain a first hand understanding of the financial status of MRL and how it intends to resolve the outstanding payments to farmers.

The sum owing to farmers in the first crop this year is around $ 200 M, some $17M for Essequibo farmers and a much larger sum for those in Berbice; but Persaud said the company has been making a concerted effort to settle payments with the latter.

He said farmers and the RPA have indicated that there is a delay in payments to farmers, particularly in Regions Five (Mahaica/Berbice) and Six (East Berbice/Corentyne), as well as a small number in Region Two (West Demerara/ Essequibo Islands).

The GRDB and RPA have been tasked to monitor this situation.

If the company does not honour its obligation, Persaud said the GRDB has the power to make certain interventions but these will only be used as a last resort.

According to Persaud, these measures include private actions by farmers and reviewing the company’s milling and exporting activities.

In a move to better protect farmers, legislation is currently being drafted that will allow for greater representation of farmers as it relates to payment by millers.

The minister stressed he is concerned about the current situation because farmers have to undertake significant investment and resources for this year’s second crop.

He pointed out that the company has indicated to him that it had to “tidy up” internal issues and will now have a better reputation in terms of paying farmers.

MRM has also said that the global economic slowdown is affecting the ability of some of its buyers to make timely payments.

“At the end of the day, we want farmers to be treated fairly and millers and exporters to be in a position to carry out their activities,” Minister Persaud said.
He said the issue of MRM giving farmers’ fertiliser in lieu of cash payments and claims from some farmers that the price fixed by the company is higher than the market price for the commodity will be looked at with the view to putting some form of regulation in place to address the situation.

On that score, Persaud said the role of the GRDB is not to be punitive but rather to facilitate growth and development within the industry and to ensure there is fair play in all business operations.

Seeraj was pleased to get MRM to meet with the GRDB and the RPA, but noted this happened after Persaud intervened in the issue of outstanding payments to farmers.

He contended that the company is the largest operator in the sector, the industry cannot do without the operation, and it has been taking advantage of this situation.

But the RPA General Secretary said, regardless of its size, MRM has to operate within the regulations of the industry and his organisation demands nothing less.

He also underlined that encouragingly, the steps made by the company over the past two months to meet its financial obligations to farmers are testimonies to its preparedness to work in the interest of the industry.

The company has already paid Region Four farmers and the RPA General Secretary said it has promised to soon settle payments to those in Regions Five and Six.