THE embattled Mahaicony Rice Limited (MRL) has, over the last few weeks, kept pace in honouring its obligations, having paid some 90 per cent of the debts owed to farmers since the 2010 first crop.
Agriculture Minister Robert Persaud, who made the disclosure, said, due to the progress made with payments, MRL has been allowed to resume milling and exporting activities.
However, he pointed out that special mechanisms are in place to track that company’s rice trade agreements.
Persaud told the Guyana Chronicle that verification of all MRL payments is being done concurrent with the occurrence to ensure that farmers receive their due.
“I am happy that, finally, the company is honouring its obligations to farmers. The GRDB (Guyana Rice Development Board) and the RPA (Rice Producers’ Association) were mandated to monitor and, from all accounts, payments are progressing smoothly,” he said.
Additionally, to bolster the legislative protection for rice famers, Persaud is expected to pilot the Rice Factories Act amendment in the National Assembly soon.
The amendment, read for the first time in the House last July, will ensure that millers have to pay every farmer 95 per cent of what is owed, within 42 days of supply, before they receive a licence.
Until the legislation is promulgated, though appreciative of being paid, several rice farmers, who voiced their concerns to this newspaper, said their next move is to secure, from MRL, interest accrued on the debts incurred last year.
RPA General Secretary, Mr. Dharamkumar Seeraj confirmed that the interest will follow once the principal amounts have been paid and MRL is legally obligated to paying it.

Signed agreements

MRL had, previously, signed agreements with farmers to have half of the payment ready after the first 14 days and the rest after 41 days, with delays attracting two per cent plus the current lending rate of interest at commercial banks.
Seeraj said, as farmers are, finally, being paid, the RPA is taking one step at a time.
Yesterday, this publication interviewed several rice farmers in Region Five (Mahaica/ Berbice) who were thankful of being paid, especially at a time when excessive rainfall and flooding devastated some of their crops.
Mr. Shafiq Shakoor migrated before he could have collected his money from MRL but his cousin, Mr. Roopchand Doodnauth acknowledged the debt was recently paid.
One farmer, Mr. Seenarine Persaud, who was fully paid last week, said he is thankful and, after the effects of the weather on his cultivation, he has resources to plant the next crop.
Father and son, Mr. Luckicharran Baldeo and Mr. Deochand Luckicharran, who are involved in a joint enterprise, said the long overdue payment will assist in servicing their families’ needs, too.
Mr. Nandeo Persaud admitted being paid minus the interest.
He said the non-payment, over time, caused him to take loans and, now, with 20 acres lost under water, payment in full is needed to resume planting.
MRL is one of the largest rice millers in Guyana, since 1991 and controls a significant percentage of the paddy purchases countrywide. It has its main operations at Mahaicony and Blairmont in Region Five but other buying centres at different locations.