AS HARVESTING of the 2014 first rice crop continues, Agriculture Minister Dr. Leslie Ramsammy told the Guyana Chronicle that two additional markets will hopefully come on stream shortly to cater for the spring crop production.
He said, “We are still at the table with Guatemala and Brazil… We consider every market where rice is needed a potential market, and in the last four years, we have made progress with our exports.”
According to Dr Ramsammy, Guyana has already commenced shipping to Haiti, which is now taking some 60,000 tonnes of rice, compared to only 1,000 tonnes last year. He added that shipment of 4,000 tonnes of rice to Belize is expected to start this week.
“By any standard, the work we have done to improve our exports is impressive,” he said. “In the last four years, our exports have increased by 100 per cent.”
The Ministry of Agriculture has adopted a three-pronged approach to improving access to rice markets: increasing the market share in countries that have agreements with Guyana; re-entering old markets where the country once had a meaningful presence; and securing new markets.
Asked about the Venezuela agreement, the minister said Guyana’s market in the neighbouring country is not in danger, despite the fact that shipping has not yet started. He said, “We have agreed on prices and volume, and all the agreements have been signed. The timing is what we have to agree on.”
Dr Ramsammy noted that Guyana would export a volume similar to last year’s, at prices comparable to what obtained then.
FAIR PRICES
To this end, the minister said that, based on this, millers are being encouraged to pay farmers a fair price. The dilemma facing the sector presently is that while production has increased, new markets have not opened up simultaneously, and this has resulted in a decrease in the prices being offered by millers.
Compounding this challenge is the fact that there are tonnes of paddy from last year’s final crop, the autumn crop, still to be sold.
Dr Ramsammy met with millers a few weeks ago and explained that he would continue to engage farmers across the country.He said those meetings addressing prices being paid to farmers have yielded positive responses.
“The millers have been reassured that the Venezuela market is there, and some of the millers have indicated that the prices — between $2,500 and $3,000 (per bag) — will be treated as an advance payment, with the balance, using $3,500, as the base price, being paid retroactively,” Minister Ramsammy has assured.
He added that the prices being called for are between $3,500 and $3,700 per bag, and he called on millers to pay prices that are comparable to what obtained in the last crop, particularly given that Venezuela would pay around the same range it paid last crop.
The minister pointed out that Guyana is competing with a set world market price which it has very little influence to change.
Some 250,000 tonnes of rice are expected to be reaped in this crop, with an average yield of 34 bags per acre.
However, Dr Ramsammy explained that the Agriculture Ministry is working with millers to reduce their input cost and increase their efficiency, to ensure they can get better prices; while work is ongoing with farmers to increase their yield per acre.
“We are producing rice and we have rice to sell, good quality rice to sell….We have to continue our work, to ensure that farmers improve their yield and millers access additional markets,” he said.
Last year, Guyana exported 398,000 tonnes of rice, and exports this year are expected to stand at 475,000 tonnes — a 20 per cent increase.
The production for 2013 was 535,212 tonnes, which was far above the original target of 413,000 tonnes, and reflected a 27 per cent increase over 2012 production. The average production per hectare is five tonnes.
(By Vanessa Narine)
