GENERAL Secretary of the Guyana Rice Producers’ Association (RPA), Dharamkumar Seeraj, at a Guyana Rice Development Board (GRDB) Farmer’s Exchange yesterday, said court action will be taken against the embattled Mahaicony Rice Mill if management does not address the payment of farmers.
The Farmer’s Exchange, at Lesbeholden, Black Bush Polder, Region Six (East Berbice/ Corentyne), attracted farmers from the rice producing regions and they welcomed this assurance.
Seeraj noted that he and other stakeholders met with the owner of the mills, who is expected to be in the country today, and made clear their position.
The issue of non-payment has plagued farmers since March this year, and some have already taken legal action against the company.
The RPA General Secretary stressed that RPA has always and will continue to promote and protect the interests of the farmers.
However, Seeraj noted that the Association’s position is that the sector needs the capacity that Mahaicony Rice Mill has, but this need cannot be used to hold the sector to ransom.
He pointed out that farmers who have not been paid have suffered tremendously; some were unable to plant a second crop, some were unable to service their crops and some even had to resort to borrowing money and paying hefty interest rates.

Non-payment’s Reality

One farmer, Mr. Shafiq Shakoor, told the Guyana Chronicle that he and 10 others intend to take legal action if the Mahaicony Rice Mill does not honour its obligations.
He stated that confidence among farmers is significantly lacking and added that paddy from his second crop will not be going to Mahaicony, especially considering that he also owes money to the bank.
“I plant 50 acres this second crop and from the last one, six months now, Mahaicony still got $701,000 for me,” Shakoor said.
The farmer added that he is willing to wait on payment, once the mill can pay out at least enough to cover capital costs.
“I got to buy a machine if they give me that money, I gon wait on them, but they got to do something,” he said.
Shakoor added that at present he is harvesting and has sold paddy to another mill, which has already paid him for it. Another farmer, Mr. Seenarine Persaud, said his view is that Mahaicony might never deliver on its promises to pay farmers.
“They still got over $290,000 for me, but I feel we might lose this money…when you go there you cannot see anyone,” he said.
Persaud noted that he too harvested and sold his paddy to Hack Rice Mills and had already been paid.
Not getting monies owed to him is not an option for Nandeo Persaud, who said, “Right now I digging one hole to fill another one. It’s loans all the time.”
He said Mahaicony Rice Mill owes him $1.4M since March, and he has not been able to cultivate his entire field.
“I got 30 acres, but I only plant 20 this crop…I need the money because I got children going to school and I owe the bank,” Persaud said.
He stressed the inconvenience and added that for this crop, he had harvested, sold to Hack Rice Mill and has already been paid.
Another farmer, Jagdeo Persaud, told the Guyana Chronicle that he is owed some $1.3M for the last six months and still has no word on payments.
“I was there and they keep saying soon, but one week done pass and nothing, we ain’t hear from them,” he said.
Persaud added that he was a regular supplier at the mill, but in his opinion the company has gone from bad to worse.
However, he stated that he is unsure of what to do because of bad experiences with other millers.
“The other millers taking advantage of you, because they robbing you when it come to the weight of your paddy…they paying you less,” he said.
Persaud stated that he is even unsure about the next crop, since for the second crop he had to “put his hand in his pocket” to finance it.
“One crop you put you hand in your pocket, you can’t do it again. You can’t take that chance or you might not have anything left,” he said.
Father and son, Luckicharran Baldeo and Deochand Luckicharran, said together Mahaicony owes them almost half a million dollars.
“We are not sure yet what we will do if we gon go to Mahaicony or go to another mill…I borrow money to do my crop, 15 acres, so I need my money, just like all the rest of farmers. We got families to look after,” Baldeo said.
When the National Assembly resumes its sitting this month, 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 pay every farmer 95 percent before they receive a licence. This must be done within 42 days of supply.
The Rice Factories (Amendment) Bill 2010 was read for the first time in the National Assembly in July.