AGRICULTURE Minister Robert Persaud told the Guyana Chronicle that the embattled Mahaicony Rice Mill has indicated that it will be a part of the second rice crop and that arrangements are being put in place to ensure that farmers are paid.
According to Persaud monies received from sale of paddy by Mahaicony Rice Mill to different markets are expected to be put in a separate bank account, from which farmers will be paid to avoid further frustration.
Persaud noted that Mahaicony Rice Mill will be supporting the fulfillment of the contract to supply the Venezuelan market.
Guyana 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 tones of white rice.
The Guyana/ Venezuela deal, according to the Agriculture Minister, represents prices that are 25 to 30 per higher that on the international market for paddy and 75 per cent higher for white rice.
Rice sector stakeholders had earlier this week called for the air to be cleared on the future of the mill which controls 40 per cent of the paddy purchases in Guyana and has mills across the country.
Also an audit stated by the Ministry of Agriculture, to reconcile claims by farmers of monies owed to them with the records of Mahaicony Rice Mill, is still underway.
However, the general consensus among several farmers is one that reflects a lack of confidence in the company’s ability to meet its obligations.

Capacity

In an invited comment, General Secretary of the Guyana Rice Producers Association (RPA), Mr. Dharamkumar Seeraj, said the lack of confidence is understandable, but the fact of the matter is that the industry needs the capacity that Mahaicony Rice Mill has.
He stressed that the industry needs the mill’s capacity to be operational.
“RPA’s position is that the more capacity the better for the industry, especially with the current erratic weather conditions we have,” Seeraj said.
He added that RPA welcomes Mahaicony Rice Mill’s most recent decisions and noted that the Association will support any system put in place to give farmers more comfort, as it relates to their operations.
The RPA General Secretary noted that this is a move in the right direction since many farmers are very much frustrated because of outstanding monies owed to them for last crop’s paddy.
When the National Assembly resumes its meeting in October, it is expected that the Rice Factory Act will be amended, 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.