MRL facing class action over non-payment of farmers

MAHAICONY Rice Ltd.  (MRL) is now facing a lawsuit over the non-payment of farmers after Agriculture Minister Robert Persaud disclosed that a class action is to be filed against the company. He said the litigation will go after MRL’s assets to have the rice farmers’ debts honoured but the engagement with the company continues.

However, Persaud maintained that the legal route is now the way to proceed, considering the distress of farmers whose livelihoods depend on them being paid.

He said an audit team went into MRL yesterday to get a more accurate picture of its indebtedness to the farmers, although current estimates put the amount, owed over nine months, at $300M.

Meanwhile, the loan facility provided by Demerara Bank Limited to relieve the farmers was not disbursed and most of it, $85M of $140M, was secured by Arnold Sankar, to whom MRL was also indebted.

In a prior interview, with the Guyana Chronicle, Persaud had said farmers are encouraged to make use of the legal system and access the provisions made by law to protect them and their investments.

Some took the advice while others waited in the hope that MRL make the payments.

However, legal support is being offered by Guyana Rice Development Board (GRDB).

The Principal of MRL, Mr. Jai Beni has left the country after a brief visit and repeated attempts to contact the General Manager, Ms. Tara Ghani, proved futile.
It is estimated that MRL purchases about 40 per cent of the paddy produced countrywide and General Secretary of the Rice Producers’ Association (RPA), Mr. Dharamkumar Seeraj has assured they are also on the side of the farmers.

SHARE THIS ARTICLE :
Facebook
Twitter
WhatsApp
All our printed editions are available online
emblem3
Subscribe to the Guyana Chronicle.
Sign up to receive news and updates.
We respect your privacy.