THE embattled Mahaicony Rice Limited (MRL) has finally commenced payments after almost a year of indebtedness to local rice farmers in the sum of over $200M, a welcomed move finally, but the sufferings of farmers caused by the delayed payments underscore the urgent need for legislative protection. MRL is one of the largest rice millers in Guyana, doing business in Guyana since 1991, and reportedly controls a significant percentage of the paddy purchases in Guyana – a changing dynamic after the company’s prolonged indebtedness to farmers.
Highly anticipated, the Rice Factories (Amendment) Bill 2010, which was read for the first time in the National Assembly since July last year, is seeking to change the culture of indebtedness. It is expected to ensure that rice farmers have some added protection, as well as ensure that millers have to pay every farmer 95 percent of what is owed to them before they receive a miller’s licence. This must be completed within 42 days of supply.
However, the word from officials on the delay in the amendment’s passage is that a consultation process is underway to ensure that stakeholders have an adequate chance to review it.
Meanwhile, the man at the grassroots level is left with the heavy burden to bear; with a family to feed, children to send to school, clothes and other amenities to provide and another crop to service to ensure a living is earned and future needs are met.
They say money makes the world go round and, while this is debatable, it can be agreed that without money, more often than not, basically a person can starve, at the very least.
These farmers are real people with real needs and obligations, for example those who took loans have mortgages to pay. Yet they are being plagued, in an overwhelming way, by these less than desirable business practices of delinquent millers.
It should be noted that the ‘bad business’ culture fosters negative impacts, which not only affects farmers’ livelihoods, but essentially affects the socio-economic development of Guyana as a whole.
Socio-economic development is, by definition, the process of social and economic development in a society and is measured with indicators, such as Gross Domestic Product (GDP), life expectancy, literacy and levels of employment.
Without money, a lot of this is not possible, and it is time enough for a tightening up of the loopholes that allow such practices.
In an effort to support farmers, Agriculture Minister Robert Persaud last December announced that unless outstanding payments are made the operations of the defaulting companies will not be re-licenced.
Also, legal support was given by GRDB to some farmers to take their cases to court in efforts to secure the millions that were owed, which was a successful process for those who opted for this route.
However, non-payment to farmers is not a new problem, but a perennial bugbear for several years now, and while farmers have the option of moving to the courts to secure their monies, most prefer this as a last resort.
The Guyana Rice Producers’ Association (RPA) has been ardently fighting for farmer’s rights and its General Secretary, Mr. Dharamkumar Seeraj, contends that best practices need to be maintained in the sector.
The passage of the amended Rice Factories Act will see tougher sanctions for those defaulting millers who take advantage of farmers. It will also empower agencies like RPA to take farmers’ representation a step further.
Rice production occurs along the coastal belt of Guyana, utilizing over 170,000 acres of land per annum. The industry has become one of the economic cornerstones of this country. It is second to sugar as the most important agricultural industry, contributing approximately 20 percent of the agricultural gross domestic product (GDP), and about 12 percent of export earnings.
Guyana’s rice industry is potentially the most dynamic force in the nation’s economy and has been able to create a rapid and positive change in the fortunes of the nation’s rural farming community and the economy of the country.
That said, there must be a collaborative drive to ensure better business practices and cooperation, as the rice sector continues to be developed and the farmers’ and millers’ livelihoods improved – all of which support Guyana’s development.