With increased industry production…
AGRICULTURE Minister Robert Persaud yesterday met rice millers at his ministry and addressed their concerns while giving his up-to-date assessment of the sector, especially with harvesting of the second crop well underway. Reaping is continuing in the main rice growing Regions:  Region Two (Pomeroon/Supenaam), Three (West Demerara/Essequibo Islands), Five (Mahaica/Berbice) and Six (East Berbice/Corentyne) and the target is 4.2 million bags of paddy from 175,000 acres.
However, up to now, only 14 per cent of the cultivation has been harvested but Mr. Persaud said projections indicate a production of 356,000 tonnes of paddy, an increase over last year’s 342,000 tonnes.
Noting that those advancements have been made in face of the recent El Nino and current La Nina conditions, he said they are due to the fact that the Ministry has made several interventions to help farmers cope.
Persaud said millers have begun to purchase paddy from farmers and several agreements, for the export market, have been concluded while others are still being negotiated.
One of the newer export markets is Venezuela, where Guyana clinched a deal, worth US$38M, for the supply of 50,000 tonnes of paddy and 20,000 tones white rice
Persaud reported that response to that agreement has yielded more than the requirement and it is encouraging, because the Ministry has to “cajole” farmers to come on board.
He said all farmers would be included in the arrangement but Guyana Rice Development Board (GRDB) will be doing a selection to decide how they must participate in fulfilling it.
Persaud explained that the quantity each farmer provides will be decided on the basis of criteria developed by GRDB and the process should be underway by next week.
He observed, too, that the encouragement from farmers and millers bodes well for the Ministry’s move to access other similar markets.
In that context, Persaud emphasised the need for collaboration towards a viable and competitive rice industry.
He said the concept of value-added must be kept in focus and as it is important for the sector to respond to international trends.
Attending yesterday’s meeting, as well were GRDB General Manager, Mr. Jagnarine Singh and General Secretary of the Rice Producers Association (RPA), Mr. Dharamkumar Seeraj.
GREATER FOCUS
Seeraj agreed that greater focus by farmers, not only on value-added but on all areas of rice production is necessary to secure more markets.
He said the Venezuelan contract, a welcome commitment to purchase well before the grains are reaped, only takes care of about 1.3 million bags of paddy.
Seeraj said this country produces well over four million bags annually and there is need, therefore, for more work to ensure that the paddy is sold and farmers reap the rewards, noting that the bottom line is improved livelihoods for them.
The millers expressed the view that much more has to be done to improve the sector.
They felt, though, that it is too early to settle on a price for paddy although, in some areas, farmers are being paid $3,500 per bag.
The majority of the millers said their prices will be decided, once each miller can be assured of a share in supplying the Venezuelans.
Persaud reiterated that the Ministry wants to accommodate each farmer and miller but said the quantities to be provided will be made known by GRDB next week.
He said a new contract was drafted for those involved with the Venezuela market, one with more clarity and it was welcomed by millers.
Persaud disclosed that the first agreement with the neighbouring republic was used to craft the second.
Another issue discussed was the loss of markets due to competition from United States suppliers and he acknowledged that Guyana will never be able to compete with them on a level playing field due to the heavy subsidisation of farmers’ operations in that country.
Persaud said such actions only serve to distort agricultural trade.
Millers also complained about farmers not doing enough and said they need to enhance their role, for example with the maintenance of access dams instead of waiting for it to be done by regional authorities.
Persaud responded that there needs to be more collaborating between regional authorities and farmers and said some of the latter “want to grow rice over the telephone.”
Millers were also concerned about delays, by Guyana National Bureau of Standards (GNBS), in certifying their scales and the Minister undertook to arrange for them to meet officials of that agency and exporters to agree on best practices.
At the conclusion, the millers said they appreciated the discussions and Persaud conceded that they should be involved in meetings with farmers, in an effort to promote a more balanced dialogue as the sector moves forward. (Vanessa Narine)