-Agriculture Ministry, GRDB, RPA fully support legal or civil action by farmers
GENERAL Secretary of the Guyana Rice Producers Association (RPA), Mr. Dharamkumar Seeraj, is contending that there has been not been much progress in the eyes of the farmers as it relates to the monies owed to them by millers, in particular the Mahaicony Rice Mill Limited (MRML). Seeraj told the Guyana Chronicle that MRML has as much as $300M outstanding in payment for the last crop.
MRML reportedly controls 40 per cent of the paddy purchases in Guyana and has mills across the country.
The embattled company recently had to halt the shipment of 5,000 tonnes of rice, but after a recent court ruling, the shipment was allowed to leave Guyana. The ruling required the MRML to pay Mr. Mohamed Shariff,a rice farmer, $10M by Friday next. Official reports are that Shariff is owed in excess of $98M by the rice mill.
Attorneys Anil Nandlall, Manoj Narayan and Euclin Gomes filed the relevant court documents on Shariff’s behalf earlier this year. Shariff claimed he sold a quantity of paddy to the mill worth some $108M, of which $10M was deducted as land rent.
The same groups of lawyers represented Mr. Arnold Sankar, a rice farmer from the Essequibo, who claimed that between September and November last year he purchased and paid for a quantity of paddy from Essequibo farmers and sold it to the mill. However, Sankar said he has not been paid and the cheques in his possession were rejected at the bank. Since then Mahaicony Rice Limited also had to lodge a guarantee of another $125M, payable by September 17th.
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Meanwhile Agriculture Minister Robert Persaud told this newspaper that farmers are encouraged to make use of the legal system and access the provisions made by the laws of Guyana to protect them and their investments.
“Farmers should utilise this avenue…it will tell those individuals and companies, who believe farmers can be treated in any manner, that they will be protected. We have the laws passed in Parliament.”
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. 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.
At present, the Ministry of Agriculture is taking steps to amend the Rice Factory Act so that rice farmers can have some added protection. 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. The Rice Factories (Amendment) Bill 2010 was read for the first time in the National Assembly in July.
Persaud said, “The Amendment will be debated as soon as Parliament comes out of recess. I have delayed the second reading because I want to give stakeholders a chance to review it.”
The Agriculture Minister noted that though the Guyana Rice Development Board (GRDB) legal support is being offered and it will continue to be provided to those who wish to use the legal system to address their issues.
As regards cheques issued to farmers being rejected at the bank, (bounced cheques), Persaud made it clear that this is a criminal act.“I have asked the GRDB and the RPA to work with the farmers and ensure they go to the police, because this is an illegal act,” he said.
The minister reiterated that there is support for farmers who want to take action, and urged the same.
According to him, whether it is civil action or pursing a criminal act, the Ministry of Agriculture will support the farmers.