Alluding to the recent issue of farmers being paid low prices for their paddy by millers, Ramsammy warned that his ministry will not tolerate any unfair practices in the industry.
He said, while the first 2013 crop was very successful, it was not without challenges, one being the payment to farmers by millers.
The minister acknowledged, however, that, so far in 2013, Guyana has been able to maintain, at levels comparable to those of last year, prices secured from the importing countries.
Pay similarly
He said it is, therefore, expected that the millers would pay similarly to what they paid in 2012.
“It is important because, when we make arrangements with countries like Venezuela, we expect that the people who are producers benefit as much as anybody else from these arrangements and, therefore, we expect millers to be fair to the rice farmers,” Ramsammy reiterated.
He said the Agriculture Ministry has been working diligently through the Guyana Rice Development Board (GRDB), diplomatic circles and various other ministries, to ensure that favourable prices are maintained.
He explained that the signing of the Guyana/Venezuela rice deal was delayed due to the unexpected death of Venezuela’s President Hugo Chavez and many millers used that as an excuse to pay very low prices to the farmers.
Ramsammy stated, though, that there was an arrangement with the millers that allowed them to pay a minimum price, pending the inking of the contract.
According to him, it was agreed that, once the agreement is signed, they would adjust the price and then pay farmers the difference and most of them have so done.
Adjusted prices
The Minister recalled that, last year, the average price for paddy was approximately $4,000 per bag across the country but the adjusted prices are now between $3,700 and $3,800 and the ministry is continuously working with the millers to ensure that those amounts get as close as possible to the $4,000 mark.
Ramsammy said the Agriculture Ministry has instructed the GRDB to make sure that millers work within the laws of Guyana and, for this reason, the mills are being monitored to see how they are paying farmers.
He revealed that, thus far, they have found some discrepancies and are working with the millers to correct them. But, while few are hesitant, the majority of the millers have been cooperative.