Minister of Agriculture, Robert Persaud has expressed his disapproval over the actions of rice millers who continue to delay payment to farmers.
Minister Persaud was addressing issues affecting farmers during an interactive meeting at the Rice Producers Association (RPA) office recently.
He stated that many millers insist on withholding outstanding payment and have failed to recognise the importance of paying farmers within the stipulated period.
The minister singled out one particular rice mill in Mahaicony, which he said, has been extremely delinquent in its payment to farmers.
He noted that the ministry will continue to push for early payment within 42 days after which the necessary sanctions, including interest, will be applied.
“If they fail to pay within the 42 days, then the interest will be applied, and we will insist that this is done,” the Agriculture Minister said.
He mentioned that the Guyana Rice Development Board (GRDB) has been instructed to issue a stern warning in writing to the companies.
“A proactive approach will be taken and if they fail to respond in a timely manner, we will take appropriate action.”
Minister Persaud said two successful attempts were made to the National Assembly to facilitate the amendment of the laws.
He further assured that “any farmer requiring legal support will be given help by the ministry to secure a lawyer free of charge”.
The Rice Factories Amendment Bill aimed at protecting rice farmers dictates that millers pay for paddy within 42 days.
The Bill, No. 35 of 2009, was accented to by President Bharrat Jagdeo on December 22, 2009, after being tabled in the National Assembly on October 15, and passed on October 22, 2009, after three readings.
Millers have a period of two weeks by which to pay 50 percent of total sale to individual farmers as opposed to just 50 percent of total paddy sale.
They were also granted an additional 42 days to pay the remainder, failing which they face the possibility of having their licence revoked.
The Bill amends the Rice Factories Act 1998 with Clause two, seeking to ensure that millers owe no farmer over five percent of the paddy supplied unless approved by the GRDB.
Clause three amends the schedule of the Principal Act by providing a specific time frame within which to pay the farmer for the paddy sold.
Minister Persaud said government has a moral obligation to institute legislative provisions to protect its vulnerable population. (GINA)