Dear Editor,
TWO weeks ago the price for paddy increased here on the Essequibo Coast. A tour to a mill at Hampton Court has revealed that the price has increased from $ 2,300.to $2,400 for grade A,B,C, and sample grades. However, if the farmers wanted all his cash on the spot he has to offer it at $2,300 for a bag, otherwise he has to wait two weeks for the $ 2,400. Something doesn’t add up here; the farmers will lose $ 100.00 on this deal; this money that he will be losing can offset his combine reaping.
The farmers have already felt the consequences of the falling price from $ 4,000 to $ 2,300 a bag, almost half the price which they were getting from Venezuela. Signs are still pointing in the direction of a further increase of prices and competition for the rest of paddy which is still in the fields; though the increase may be small, it will help the farmers to defray their expenses .Half of the Spring Crop has already been harvested here in Region Two. The farmers are enjoying the sunny weather as there are no difficulties in reaping and transporting their produce to the mills.
The rice industry in Guyana and Region Two is the most integrated of all sectors, be it political, economic, or social, as it permeates the entire fabric of our country.
It is integrated, because each structure that serves the industry is interdependent. Farmers depend on the input suppliers and banks to provide them with the necessary agro-inputs and working capital to produce their paddy, which will be processed by millers into palatable and edible form for consumers, both locally and externally.
The price for rice in the Caribbean and farther afield, has increased minimally from last season and this is expected to hold for a short time, then the prices are expected to increase further, especially as stocks of rice will be decreased in the warehouse of the mills; and there will be a rush for rice to meet the markets. Some countries have recently given commitments to import Guyana’s rice and the logistics are being worked out at this point in time. The Minister of Agriculture has gone to Costa Rica to see if he can have an additional market for Guyana’s rice and other products; this is a good sign for the farmers and millers
Yours sincerely,
Mohamed Khan