–says it’s hurting small farmers

PRESIDENT of the Central Corentyne Chamber of Commerce, Mohammed Raffik, is calling on the government to address the issue of sub-letting of rice lands in Berbice, as it is hurting the industry, not only in the region, but across the country.

According to Raffik, these non-resident landowners are exploiting local farmers who are required to pay a rental fee of $20,000 to $30,000 per acre per crop, when they are only required to pay the government $1000 per acre annually for the leased state lands.

“It is something that the government should address with some amount of urgency, as it is not only affecting the industry, but small farmers as well,” Raffik said.
“These said landowners, who pay a meager fee for the land annually, are taking the huge sums of monies and returning overseas without paying a dime in taxes; they are not looking to develop Guyana,” he added.

Last November, Agriculture Minister, Mr Noel Holder, during his 2018 Budget presentation, spoke of the seriousness of sub-letting, noting that it is a breach of the Rice Factories Act.

According to the Act, leaseholders found to be in breach of the conditions of their lease can have it cancelled.

Raffik was among several private sector representatives who sought an audience with the minister at a meeting organised by Special Representative of the Prime Minister in Region Six (East Berbice-Corentyne), Mr Gobin Harbajan.

The meeting was held in the boardroom of the Nand Persaud rice milling operations in Black Bush Polder on Thursday.

Responding to the concerns raised by the Chamber’s president, Minister Holder agreed that there is urgent need to have the matter addressed, but said it is a matter for the Lands and Surveys people, especially where State lands are concerned.

“The question of sub-letting is a vexed issue that has been engaging my ministry for the past two years, especially in the MMA/ADA project in West Berbice,” Minister Holder said, adding:
“Imagine it’s these big land-lease holders who were refusing to pay the rates for land rental and D&I charges, even before the increase in rates, who turn around and demand up-front $20,000 to 30,000 per acre per crop from small farmers.”

He disclosed that the MMA/ADA is owed approximately $700M by these defaulters, not at the new rate per annum, but at the old rate of $1000 per annum, all the while fleecing local producers.

Minister Holder assured the Chamber head and private sector representatives at the meeting that definitive action will be taken against these lease-holders who have gotten away with this practice for years.

Already, defaulting farmers in the MMA/ADA have been issued with demand letters advising them to pay up immediately or face the possibility of having their leases cancelled.

Minister Holder stressed that what is currently being considered is to cancel leases held by the overseas individuals and have those lands reissued to the farmers who were subletting and are actually the producers of rice.