…sowing for 2011 spring crop has started
THIS year’s autumn crop performed well, according to Guyana Rice Producers’ Association (RPA) General Secretary, Dharamkumar Seeraj.
He said that while there was a slight decrease in production, there was an improvement in the quality.
“Given the constraints we had, the weather, and getting the rain when we did not need it, and not getting it when we needed it, we did reasonably well,” he said.
Regions Two (Pomeroon/ Supenaam), Three (Essequibo Islands/ West Demerara), Five (Mahaica/ Berbice) and Six (East Berbice/ Corentyne) are Guyana’s main rice producers. This year, the rice target is 4.2 million bags of paddy, 175,000 acres, and projections indicate a production of 356,000 tonnes of paddy.
In 2009, production some 342,000 tonnes and 260,000 tonnes were exported, raking in some $114M.
This was a drop from the record-breaking year Guyana had in 2008, with 329,000 tonnes produced and 196,000 tonnes exported to bring in $118M. The high profits were a result of movements on the international scene, but in 2009 prices dropped.
However, Seeraj said in 2010 prices were good, expressly in light of the fact that Guyana was able to tap into the Venezuelan market.
Through the Guyana/ Venezuela rice agreement, settled earlier this year, farmers are expected to benefit from better prices than they did last year.
Seeraj said between 1.2 and 1.5 million bags of paddy have a guaranteed market with the Venezuela deal.
This is the second agreement with Venezuela, to the tune of some US$38M, for the supply of 50,000 tonnes of paddy and 20,000 tonnes of white rice
“Compared to the last two seasons, this crop benefited from an improvement in the prices…prices ranged between $2,800 and $3,400 a bag,” he said.   
For this crop, farmers, on average, are making a yield of 28 bags of paddy per acre and in some regions as much as 30 bags per acre.
Seeraj pointed out that Guyana exports close to 75 per cent of its rice crop.
The RPA General said Guyana is in the process of being accredited to export with the Fair-trade Certificate Label.
“This is a work in progress…it is a process that might take around 12 and 18 months to get sorted out. Right now, it is too early to say the extent of the impact this will have on the sector,” he said.
Fair-trade is an alternative approach to conventional trade and is based on a partnership between producers and consumers. It offers producers a better deal and improved terms of trade, and this allows them the opportunity to improve their lives and plan for the future. The minimum fair-trade prices paid to fair-trade producers are determined by the fair-trade standards. In this way, farmers have a safety net and are not completely at the mercy of the market.
Seeraj noted that once Guyana has the Fair-trade Certificate Label, then Guyana’s rice will be able to enter a niche market.
“Our rice will go to a niche market that recognizes the Fair-trade Certificate Label and we will get more for our products there,” he said.

Spring Crop 2011
Seeraj told the Guyana Chronicle that the 2011 spring crop has begun.
According to him, sowing has started in Region Two, and the other rice producing regions are engaged in land preparation works.
He pointed out that in some areas, particularly in Region Six, the conditions of the dams are not good, making access to the fields difficult.
“These need to be repaired and right now farmers are doing what they have to…the spring crop 2011 has started and we are hoping for the best,” Seeraj said.
When asked about the non-payment to farmers by Mahaicony Rice Limited (MRL), he said this continues to be a sore point.
However, Seeraj noted that indications are that some payments will be made later this week.
“I spoke to the Principle of Mahaicony Rice Mill and we hope this time they come through with their promise…if they make payments then that will be good, because the payments are long overdue and farmers need their money,” he said.
He made it clear that if this does not happen, the sector stakeholders representing the interests of the farmers will pursue legal action.
A class action lawsuit is expected to be filed against the embattled company, which will go after the company’s assets in an attempt to have the rice farmers’ debts settled.
An audit team from the Guyana Rice Development Board went into MRL to get an accurate picture of the company’s indebtedness to the local rice farmers, but was denied access to the accounts records.
GRDB’s request for information to conduct an audit is a lawful one and is in accordance to section 10 (1) of the Rice Factories Act. The matter is with the Director of Public Prosecution.
It is estimated that Mahaicony Rice Mill owes farmers some $300M.
An amendment to the Rice Factories Act is expected to be addressed in the National Assembly to ensure that millers have to pay every farmer 95 percent of what is owed to him 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.