Dear Editor,

THE members of the Board of Directors of the Guyana Rice Exporters and Millers Association (GREMA) would like to inform all rice millers, rice farmers and the general public that they are not in support of the agreement recently signed between Mussons/Jamaica Rice Milling Company Limited (JRMCL) and the Guyana Rice Development Board (GRDB), which would effectively limit importations of rice into Jamaica to these two Jamaican companies.While, on the surface, this agreement appears as though it is intended to increase the price and quantity of rice that millers can export to the Jamaican Market, the reverse, in reality, is likely to take place.

The reasons why the board does not support this agreement are: firstly, GREMA was never consulted on this agreement, and was made aware of it only after it was signed by the parties concerned. While we have voiced our concerns about this, the GRDB, to date, continues to negotiate with these two Jamaican companies without our involvement, although in the end it is not the GRDB that produces and sells the rice, but local rice millers and farmers.

Secondly, since this agreement artificially fixes our export price to Jamaica above the existing free market price, then there is a real fear that we can lose our share of the Jamaican Market to Suriname, who can continue to offer rice to Jamaica at the existing free market price.

Thirdly, this agreement between the GRDB and Mussons/JRMCL can be considered an anti-competitive business agreement, which is prohibited by Article 177 of the Revised Treaty of Chaguaramas (Caricom).

Fourthly, since this agreement can result in higher prices for the Jamaican consumers, there is the possibility that Jamaica could consider removing the CET on rice to allow cheaper extra-regional imports of rice into Jamaica.

The GREMA Board of Directors is of the opinion that, when the above factors are taken into consideration, this agreement in its present form and the contracts that millers are being required to sign with these two Jamaican companies would result in our rice industry being in a worse financial position than it had been under the old free market system. This will not only negatively affect millers, but also impact negatively on the livelihoods of our local rice farmers.

GREMA is of the opinion that this agreement should be cancelled for the good of the industry, and GREMA hereby seeks Government’s intervention in helping to resolve this situation as soon as possible.
Regards,
GUYANA RICE EXPORTERS AND MILLERS ASSOCIATION