RICE farmers, millers and other stakeholders in the industry are to be the main beneficiaries of a new US$54M contract inked for the supply of rice to Venezuela.
This contract, the fourth of its kind, was signed on Thursday evening after a team from the Ministry of Agriculture was able to conclude a deal with the Venezuelans.
It involves the supply of 50,000 metric tonnes of paddy to Venezuela at US$520 per metric tone, and 20,000 metric tonnes of white rice at US$800 per metric tonne.
Guyana  is to  also supply 16,000 tonnes of white rice and 5,000 tonnes of paddy outstanding from the previous contract, bringing  the total value of the deal to USD$54M.
Minister  of Agriculture Robert Persaud, made the disclosures  of what he described as a“significant development for the industry” in a brief to the media  yesterday in the presence of  Venezuelan Ambassador to Guyana, Dario Morandy .
He disclosed that the Government of Guyana has expanded and extended the rice export agreements with the Venezuelan market with the upgrading of the three previous contracts and the establishment of the fourth contractual arrangement.
With the revision of the previous contracts and this new agreement, the Government of Guyana has once again ensured that rice farmers, millers and
exporters are allowed to benefit from increased quantities of rice exports and at the same time to earn better prices for their products .
He emphasized that the new agreement in no way affects Guyana’s ability to meet the demands of other markets.

Minister Persaud stressed that this fourth  contract  was   not only  the  largest rice trade Guyana has ever had with Venezuela,  but also represented  the largest  trade agreement the country has ever had with any bilateral partner as far as rice was concerned.
He disclosed that the prices offered by the Venezuelans were higher than those being currently offered on the world market; and additionally, the contract represented a reliable and predictable  market in the face of fluctuations in the wider international markets.
He added: “We cannot ever overstress how important rice is to our national  economy and[to] the livelihoods of thousands of individuals.
“ And so the impact of this agreement, as well as the impact  which is taking place countrywide in the industry,  will  lead to improvements in the  quality of life of our people and will ensure that the future for rice remains strong, and  that the industry can grow from strength to strength .”
The fourth contract precedes three others under the Guyana/Venezuela rice deal.
The first Contract involved  the supply of  40,000 metric tonnes of paddy for US$380 per metric tonne and 10,000 metric tonnes of white rice at US$600 per metric tonne.
The price of the paddy was subsequently  revised to US$420 per metric tonne  and the white rice to  US$700 per metric tonne.

The second contract involved the supply of  50,000 metric tonnes of paddy at US$420 per metric
tonne and 20,000 metric tonnes of white rice at US$700 per metric tonne.
These prices were again revised upwards to US$480 per metric tonne for the paddy and US$800 for shipments of white rice made in 2011.

The third contract involved the supply of  50,000 metric tonnes of paddy at US$480 per metric tonne and 30,000 metric tonnes of rice at US$800 per metric tonne.

Persaud   noted that the rice agreements between the Governments of Guyana and Venezuela were made possible through a meeting between Present Bharrat Jagdeo and President Hugo Chávez a few years ago when rice prices were depressed.
“It was these initial agreements at these early meetings between Presidents Jagdeo and Chavez that allowed for rice to be exported to Venezuela for the first time. As all can see, they  have also  allowed  for greater benefits to the producers of rice in Guyana and the consumers of the various rice products in Venezuela.”
He said that  President Jagdeo’s  intervention in those early days have since  helped farmers  weather the fluctuations in prices and helped them to   get prices that made rice farming economical and  profitable, to the extent that there have been and continue to be  substantial increases in investments in the industry.
Minister Persaud also praised the work of Minister of Foreign Affairs Carolyn Rodrigues who held related discussions with the Venezuelan Minister of Foreign Affairs in Port of Spain,Trinidad, recently.
He disclosed that the fourth contract  had been sought after by the Ministry of Agriculture  in  light of the fact that this current autumn crop of rice in Guyana  was showing all indications of being a bumper crop, currently  heading close to the 400,000 tonnes production target.
He disclosed: “The total amount produced for 2011 to date is 249,239 metric tones, and for this second crop, although it has just started with a minimum percentage, we have already been able to harvest close to 50,000 tonnes of rice.”
“The rice output for 2011 will surpass the levels what were achieved in 2010, as this is evident from the first crop and the projected second crop, hence the immense added significance of this contract.”
He said that supply for the  fourth contract begins with immediate effect and that arrangements are in place for the first shipment to be effected.
The Guyana Rice Development Board  has been mandated to take all  necessary action to ensure  that farmers millers and exporters  get equity of access to the Venezuelan market and  the benefits therefrom.