THE Minister of Agriculture, Dr. Leslie Ramsammy, told the Guyana Chronicle that while the non-payment of monies owed to farmers is a legitimate issue, the injection of politics into the matter is unfortunate.

His comments followed a protest action on Friday led by Alliance For Change (AFC) Councillor, Mr. Naith Ram, which resulted in the blockage of the main roadway in Region 2 (Pomeroon/Supenaam) and the burning of tyres. The police report on the matter stated that Ram mobilised farmers who had been consuming alcohol after what was a peaceful protest march. Since, Ram and 19 others were arrested and are still in custody.
“The AFC is making this situation worse,” he said.
Dr. Ramsammy pointed out that first rice crop for 2014 was an unprecedented 315,000 tonnes, which has been the largest single crop in Guyana history and surpassed even annual targets made prior to 2000, carried a value of $23.3B, of which $19.9B was paid out. The prices per bag of paddy ranged between $3,500 and $3,700 – a price that was advocated for by the Ministry of Agriculture and agreed to by millers in the rice producing regions.
“The millers have paid 85 per cent of what was owed, that is $19.9B of $23.3B, which is a huge sum. At a meeting recently the millers and farmers agreed that the remaining monies will be paid before the end of this week,” the minister said.
He made it clear that before the issue was politicised, political agents owed millers the courtesy of allowing the agreed timeline to expire.

[box type=”shadow” align=”alignright” ]“The millers have paid 85 per cent of what was owed, that is $19.9B of $23.3B, which is a huge sum….at a meeting recently the millers and farmers agreed that the remaining monies will be paid before the end of this week.” “The facts are that political agents are trying to gain political mileage out of an issue, which is a legitimate problem that is being addressed; that the Ministry’s position is that 100 per cent of the monies owed must be paid within the 42-day limit; and that we cannot be unfair by not recognising that 85 per cent, $19.9B of the huge sum of $23.3B, has already been paid with a commitment for final payments to be made by the end of the week.” –Agriculture Minister, Dr. Leslie Ramsammy[/box]

CONSTRAINTS
The Agriculture Minister explained the Ministry’s position on the payment to farmers is clear, payments must be made within 42 days, as prescribed by the law, and infractions can be addressed in the court of law, the cost of which will be borne by the Ministry.
However, he underscored the constraints being faced by the millers themselves who, although they buy all the paddy farmers have, they do not export that purchase in one shipment, but in tranches – a fact considered as evidenced by the 42-day debt period in Guyana’s laws.
“This is something we cannot be unaware of,” Ramsammy said, adding that on time payment demands greater organisation – something that is being improved – from millers with their banks, which assist in facilitating payments.
According to him, the Ministry is working continuously with farmers and millers to ensure equal and fair treatment.
“We have to understand the constraints on all sides,” he said, appealing for cooperation to ensure the matter is resolved as agreed by the farmers and millers at their meeting.
Yesterday, the Guyana Rice Development Board (GRDB) and the Guyana Rice Producers Association (RPA) met with stakeholders in Leguan and prior to that, they held meetings with farmers and millers in Region 2.
Ramsammy bemoaned the fact that despite all the efforts being made, politics is being injected to exacerbate the issue at hand.
“The farmers and millers agreed that the remaining monies will be paid off this week,” he stressed.

LESSER OF TWO EVILS
The minister added that the 42-day debt period is the lesser of two evils, when it comes to the arrangement for payments to farmers, considering the two options available; option one being that the millers only take the paddy they can immediately pay for and have the farmers, with little or no storage capacity, and run the risk of suffering losses; or option two, buy all the paddy and export it in tranches, while ensuring that all payments are made within the 42-day debt period.
“These are the two options we have available. Both of these are not desirable, but the one we use (the latter) is clearly the lesser of two evils,” he said.
Ramsammy highlighted too that, as of yesterday, millers were writing cheques to be distributed on Tuesday, Monday being a holiday, as agreed at their last meeting with farmers.
“The Ministry has been monitoring this and will continue to monitor it,” he assured.
The minister reiterated that the facts are clear, and ought not be skewed for purposes that will ultimately not serve the interest of those involved.
“The facts are that political agents are trying to gain political mileage out of an issue, which is a legitimate problem that is being addressed; that the Ministry’s position is that 100 per cent of the monies owed must be paid within the 42-day limit; and that we cannot be unfair by not recognising that 85 per cent, $19.9B of the huge sum of $23.3B, has already been paid with a commitment for final payments to be made by the end of the week,” he said.

CONSISTENT GROWTH
He noted that the rice industry has seen consistent growth in the last few years and this success has come with its own challenges, but he was emphatic is pointing out that moves are being made to address those constraints.
Ramsammy said with the increased production there is a need for expanded markets and the Ministry has been successful in securing markets for exports that exceed last year’s exports by 60,000 tonnes, in the last few months alone.
“The evidence is clear that we are growing and the choice we have is to either work around the constraints that come with growth and scale back our production, which is not the most pragmatic approach,” he said.
The Agriculture Minister was firm in his contention that the rice sector has the potential to advance to greater heights and his Ministry is committed to ensuring that the industry realises its potential to the benefit of both farmers and millers.
The rice industry contributed about five percent of Gross Domestic Product (GDP) in 2013 and accounted for more than US$240M in export earnings. Some 40,000 people depend directly on the rice industry for their livelihood and the industry provides employment for at least 20,000 while, in terms of food security, it has helped to secure Guyana’s status as a food-secured country. Some $500M was allocated to the rice sector in the 2014 Budget.
Written By Vanessa Narine