RICE Producers Association (RPA) General Secretary, Mr. Dharamkumar Seeraj noted that, at a meeting last week, while no definite payment schedule was finalised, the Principal of Mahaicony Rice Mill (MRM), Mr. Jai Beni is clear on the stakeholders’ position. MRM, one of the biggest buyers of paddy, had signed agreements with rice farmers to make half the payments in the first 14 days and the rest after 41 days, with delays attracting two per cent in addition to the current lending rate interest at commercial banks.
But the company has violated the terms and, as a result, some farmers have resorted to legal action to secure what is owed to them while several others are still waiting to be paid.
Seeraj said: “The RPA’s position is that payments should be made within 42 days.”
He said the Association will continue to advocate for conditions that ensure farmers are comfortable and millers are encouraged to adopt and maintain good business practices in the sector.
Meanwhile, harvesting continues and Seeraj said the reduced scale of operations at MRM has not affected the industry, particularly because the weather has been fair.
He explained that other millers have the capacity to take the paddy and use both mechanical dryers and drying floors to dry the grains.
However, Seeraj noted that, if the weather changes, then the drying floors cannot be used and the capacity of the mechanical dryers would be challenged.
He observed that millers have been upgrading their facilities, which is an encouraging sign.
The harvest is continuing in Regions Two (Pomeroon/Supenaam), Three (Essequibo Islands/West Demerara), Five (Mahaica/Berbice) and Six (East Berbice/Corentyne), Guyana’s main rice producers.
This year the targeted production is 4.2 million bags of paddy from 175,000 acres and, to date, a significant percentage of the crop has been reaped.