…pursuing markets where prices are better
Guyana has settled on a second agreement with Venezuela to the tune of some US$38M for the supply of 50,000 tonnes of paddy and 20,000 tonnes of white rice.
And Agriculture Minister Persaud has said markets where prices are better are the ones that will be pursued.
Persaud made this disclosure at a press briefing yesterday at the Ministry of Agriculture. Present at the meeting were the General Secretary of the Guyana Rice Producers Association (RPA), Dharamkumar Seeraj; and General Manager of the Guyana Rice Development Board (GRDB), Jagnarine Singh.
The Agriculture Minister said this agreement, expected to kick-in in October, is the largest trade agreement Guyana has entered into and comes at a time when international market prices are low.
Persaud pointed out that the Guyana/Venezuela deal represents prices that are 25 to 30 per cent higher than on the international market for paddy, and 75 per cent higher for white rice.
“We can see what this means for the farmers,” he said.
The Agriculture Minister made it clear that the new agreement in no way affects Guyana’s ability to meet the demands of other markets.
He said the increased demands will not “endanger or reduce Guyana’s ability” to supply traditional markets.
Persaud referred to the performance of the first crop, where a “significant increase” was seen.
According to him, exports were increased by 22 per cent, and in value, the increase was some 14.1 per cent.
He added that El Nino did not pose much of a difficulty because of the interventions made by the Agriculture Ministry.
Notwithstanding these challenges, Persaud said Guyana expects a stable return.
The Minister pointed out that the first contract with Venezuela is soon to be completed, with approximately 4,000 tonnes of white rice still to be shipped.
However, even as Guyana moves forward with its partnership with its neighbour, Persaud said there are challenges with shipping, in particular, the logistics of the arrangement and the time vessels take to dock.
On average, it takes three days to navigate the waters between Guyana and Venezuela, but Persaud said a ship that left since August 13th was only able to dock on Wednesday.
Additionally, moorage fees last time around totalled some US$1M.
Persaud said he is optimistic that in moving forward, these issues will be addressed.
“The contract is good for the industry,” he posited.

More Markets

In relation to marketing, Persaud said the private sector has traditionally dealt with this, with the GRDB acting as a facilitator at other levels.
However, with the drive to diversify markets, the government is stepping up efforts to solicit more markets.
He observed that it is important for the rice industry that new avenues be pursued.
According to the Minister these new markets are in Central and South America, as well as the Caribbean Community (CARICOM).
He stated too that Guyana had tapped into the Haitian market before the devastating earthquake that rocked the island in January.
The Minister said the arrangement with Guyana’s neighbour represents a move to ensure the best for the industry and the encouragement of competition.
This agreement with Venezuela follows a visit there by President Bharrat Jagdeo in the latter part of July, when the two countries reached trade and other agreements.
The two Presidents signed the following bilateral agreements, which would pave the way for enhanced cooperation between their two countries in different fields.

The General Secretary of the Guyana RPA said the Venezuela deal is a significant venture and provides a market for 30 per cent of the paddy estimated to be harvested next season.
He noted that between 1.2 and 1.5 million bags of paddy have a guaranteed market.
“This is significant, that at the start of the crop we have secured markets that are attractive…prices will be better than the last season,” Seeraj said.
The GRDB General Manager, in adding his bit, agreed too that the new rice deal is a plus for the industry.