Guyana clinches US$48M rice, paddy deal with Venezuela
GUYANA has clinched a US$48M deal in the third consecutive rice trade agreement with neighbouring Venezuela.
Making the announcement yesterday, Agriculture Minister Robert Persaud told a media briefing it comes at an opportune time, expressly in light of the Spring crop being a bumper harvest. He said Guyana is expected to export 30,000 tonnes of white rice and 50,000 tonnes of paddy at US$800 and US$480 per metric tonne, respectively, while making greater strides in improving its share in the Venezuela market.
Mr. Persaud recalled that the first order from Venezuela was for 10,000 tonnes white rice and 30,000 tonnes paddy and the second, which is almost fulfiled, for 20,000 tonnes white rice and 50,000 tonnes paddy.
He underscored the importance of the Venezuelan market, particularly considering that the prices, when compared to others internationally, are better.
About the major concern over docking facilities that saw ships from Guyana being unable to dock and offload, causing increased export costs, Persaud said the Foreign Affairs Ministers of the two countries met on Monday and the issue was discussed.
He said that meeting was a follow-up to representations made to Venezuelan President Hugo Chavez by President Bharrat Jagdeo during a visit to Caracas by the latter.
Persaud explained that, through Guyana Rice Development Board (GRDB), quality is standardised by a team with focus on set criteria also for grading and Venezuela has representatives here who assess the weight.
Concerning security challenges, in view of recent incidents of illegal drugs being discovered in exported products, he said this problem is a living nightmare for stakeholders.
However, given the limitations of the Agriculture Ministry’s agencies on which the Guyana Revenue Authority’s Customs and Trade Administration is heavily dependent, the Customs Anti-Narcotics Unit (CANU) has been engaged to take further steps in the effort to ensure that shipments of produce from the agriculture sector are not compromised.
In light of Guyana’s emphasis on and success with meeting international export standards, Persaud said there is now, more than ever, a need to diversify operations in the sector, rather than continue to supply regular markets and face difficulties when the dynamics in those change.
He gave the assurance that supply to the traditional markets, such as the Caribbean and Europe, will not suffer but posited that new ones will make sure that farmers get the best prices.