Addressing rice farmers payment problems

RICE farmers are among the hardest working people in Guyana, toiling unrelentingly in scorching sun and shivering rain, from the wee hours of the morning until darkness steps in, to contribute to national food security and the national economy. But apart from the hard physical labour which they have to endure, they also suffer from severe mental stress as their occupation encompasses great risks because of unusual weather patterns which could result in heavy financial losses for them.
In addition, low commodity prices on the world market and high prices for inputs are also great sources of stress for rice farmers.
It therefore must be most heartbreaking for them and their families to endure further pressure from unscrupulous millers who purchase their paddy and do not pay them in a timely manner. This problem has been a constant challenge for rice farmers and while much has been done by the government in collaboration with the Guyana Rice Development Board (GRDB) and the Rice Producers Association (RPA) to protect farmers from the unscrupulous rice millers, it continues to be a cause for concern.
A particular rice-milling company seems to be a regular defaulter with respect to payments to rice farmers as it is always in the news on outstanding payments totalling large sums.
On this note the Agriculture Ministry has again had to step in to bring relief to rice farmers from Region 2, who are collectively owed close to $29M by the Mahaicony Rice Mill and its agents.
This newspaper reported Minister of Agriculture Robert Persaud, during a meeting with the farmers at his office at the weekend, as saying that his ministry, through the RPA and the GRDB, has been engaging the farmers over the last seven to eight months with the hope that the Mahaicony Rice Mill would have cleared its debt; however, the company is not living up to its commitment, and is mistreating farmers and disrespecting the rice industry as a whole.
It is fortunate that we have a government that is fully committed to agricultural development and the welfare of farmers and it has once again made tangible efforts to bring some degree of relief to farmers who have been affected by non-payments by the rice-milling company.
The minister disclosed that by next week, farmers will be able to access some amount of finance. Moreover, the farmers will be authorising the RPA to pursue Arnold Sankar from the Mahaicony Rice Mill to recoup the money which will be used to reimburse the association, as well as recover the balance owed to them.
Further, two assets, one at Vilvoorden, Region 2, and the other at Black Bush Polder, Region 6, that were pledged by Mahaicony Rice Mill to a financial institution, have now moved to the court, as a result of failure to service that debt.   

“We await the court’s deliberations and I do hope that it deals with this matter with some level of expediency,” Persaud stated.
Other actions taken against the company include the denial of a licence to purchase or export rice, and the acquisition of a court injunction barring its major player from leaving the country.
“From the financial institution and GRDB standpoint, we have exhausted all the legal options in this regard, and we are also looking at ways through which we can assist affected farmers…the Mahaicony Rice Mill has made itself unfit to do business with and is harmful to the rice trade in this country,” the minister said.
Certainly the pressure has to be maintained on this company because from all indications it seems that it is bent on not paying the farmers it owes.
Unfortunately, our judicial system is cumbersome and as such court cases take a long time to conclude, but in the meantime the government has demonstrated its unswerving commitment to the welfare of farmers by providing some relief.

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