-non-payment by millers compounding problems
GENERAL-Secretary of the Guyana Rice Producers Association (GRPA), Dharamkumar Seeraj, told the Guyana Chronicle that the current rainy conditions are the last thing that the rice sector needs and it has affected both crops and infrastructure. He explained that the rains were not expected to go so late and continue into August; hence the farmers are now forced to be particularly careful with management of their water resources.
Seeraj added that repairs to dams to facilitate the transportation of the harvest have to be done very carefully.
“Drainage of the dams is nearly impossible…more rains will affect us badly, in particular the flowering stage of the crop cycle,” he said.
The GRPA General-Secretary said the land was prepared under rainy conditions and so the field conditions are not good for harvesting.
“The rainy weather had not provided ideal conditions for us,” he said.
Another sore point for rice farmers is late payment and Seeraj said the Mahaicony Rice Mills Limited is the main culprit, as late payment was the case during the last season also.
Late Payments
Seeraj said, “We continue to monitor the situation… Mahaicony Rice Mills still owes farmers just under $300M and this has affected farmers significantly.”
According to him the farmers have to borrow monies from lending institutions and the delay in their payment is causing them a setback.
He pointed out that the entity has recently paid for significant quality of fertilizer that will be sold to farmers.
In this context, Seeraj said if the Mahaicony Rice Mills has the funds to invest in fertiliser they should pay the rice farmers.
“They are using the farmers’ money to turnover and that is not a proper business practice,” he said.
The GRPA General-Secretary said the Ministry of Agriculture is taking steps to amend the Rice Factory Act so that rice farmers can have some amount of protection in incidences like these.
The amendment is expected to ensure that millers have to pay every farmer 95 percent before they receive a licence. This must be completed within 42 days of supply. On January 11, 2007, the Amendment of the Rice Factories Act was passed in the National Assembly which made it mandatory that millers pay a minimum of 95 percent of outstanding amounts owed to farmers at the end of the year before their mill/export licences are renewed. In 1998, government enacted the Rice Factories Act, No.8 of 1998. The Act sought to regularise the construction of mills, paddy grading and purchasing, and improve the overall quality of rice exports.
Repeated attempts made to contact General Manager of the Mahaicony Rice Mill, Ms. Tara Ghani, proved futile.
Seeraj pointed out too that one miller in Wakenaam, Region Three (Essequibo Islands// Essequibo Islands), owes rice farmers there for three seasons.
However, he said the rice farmers have been given support by way of a lawyer and the matter is expected to be heard in court shortly.
When asked about the other rice mills, Seeraj said all the other mills are mostly compliant.
He acknowledged that those mills that have not paid rice farmers were delayed because they were waiting on payment for a shipment of rice to Venezuela.