THE Guyana Rice Development Board (GRDB) and the rice importing authority in Venezuela are working to conclude purchase orders and shipping schedules so that Guyana can begin shipping rice to Venezuela as soon as possible.Agriculture Minister Dr. Leslie Ramsammy said: “The long wait to begin the 2014 shipment of paddy and rice to Venezuela is almost over.

“Guyanese representatives from GRDB and the Guyana Embassy in Caracas have worked diligently with officials from various Venezuelan agencies to conclude arrangements to begin shipment of paddy and rice to Venezuela…all arrangements are expected to be completed in the coming week.”

Minister Ramsammy said Guyana hopes to begin shipping consignments of paddy and rice to Venezuela within the next two weeks, depending on availability of ships and arrangements with Venezuelan authorities.

DISAPPOINTED
Based on the agreements Guyana and Venezuela have concluded on the amounts of paddy and rice to be shipped and the prices to be paid for each commodity, Guyana expects to ship close to 200,000 tonnes of each commodity at prices that are similar to last year’s prices.

Dr Ramsammy has, however, expressed disappointment at the approach of some millers relative to the delayed shipments. He said, “I had personally assured them that the Venezuelan market is secure for 2014. I assured them that the political and administrative prerequisites for resumption of shipment of paddy and rice were concluded, and that logistical arrangements were the only outstanding issues to be agreed on.

“In such circumstances, I had asked that millers be fair in their pricing arrangements with farmers.

“I met with them collectively, and my staff spoke with many of them in person and on the phone. I met many of these millers in person and spoke with them. I made public statements urging millers to be fair to farmers in terms of pricing for paddy.

“I am grateful to those millers who responded to my urgings. I again state clearly that I have asked GRDB to ensure that access to the Venezuelan market is prioritized for millers who are fair to farmers. I do believe that prices below $3,500 for acceptable grades are unfair to farmers, and I will ensure that the GRDB gives priority to those millers who pay prices that are consistent with this view.”

ANOMALIES FOUND
The minister explained it was discovered that incorrect practices were being utilized in implementing the Rice Factories Act to calculate the number of bags of paddy, after weighing and taking into consideration moisture and dockage (extraneous matter).
He said, “I also have instructed the GRDB to work closely with the Bureau of Standards to regularly test the calibration of scales to ensure that farmers’ paddy (is) being weighed accurately.

“In addition to certification from the Bureau, random testing of the validity of the weights will be conducted without notice. Such random testing has already begun. Where anomalies are found, we will request remedies to be put in place…this is an important issue, since it affects the total payment to the farmers.

“I have asked for a 100 per cent audit of all factory slips to ensure that proper calculations are being used. Where anomalies have been found, the GRDB will force corrections to be made in accordance with the law.”

“Warning letters requesting corrections are also expected to be issued, and where corrections are not made within 48 hours, license will be suspended until corrections are made.

“While I remain understanding and flexible (on) all issues challenging the rice industry from both the farmers’ and millers’ perspectives, I believe we must all act in good faith and with fairness,” Dr Ramsammy said, as he
stressed the need for millers to adhere to the laws of Guyana in terms of payments for farmers.

“The Rice Factories Act clearly establishes the rules of payment to farmers,” he said. “I expect that these rules will be adhered to. I am ready to work with both the farmers and the millers to ensure that the rice industry continues to develop, and that the risks and vulnerabilities within the rice industry are borne fairly and equally by all stakeholders.

“I believe that all stakeholders need to accept that there is a single rice industry, and that we must respect and be fair to each other. I will be fair but firm in ensuring that no stakeholder takes advantage of another stakeholder.

“Farmers have ensured that they invest in a significant way. Farmers will invest almost $28B this year in the rice industry. These are mostly small-scale family farmers, and this is a significant investment made by ordinary citizens. They operate as private sectors and are not big business, but their collective investment is on the level of big business. They provide self-employment and employment for family members and rural community members. They must, therefore, be treated fairly.
“There are about 75 millers — small and large. They also make investments. It is only right and proper that their investments are recovered. Whether it is millers or farmers, they are all business entities, and each is entitled to a fair profit.”

Dr Ramsammy has assured that where unfair practices are identified, whether these are deliberate or not, corrective actions will be taken. “These actions are not intended to be coercive, but merely to keep the playing fields level. I wanted, therefore, to make my position clear, and give notice to all that I will act with fairness but with firmness,” he said.
Written By Vanessa Narine