The Guyana Rice Exporters and Millers Association (GREMA) has expressed displeasure at the recently signed agreement between Mussons/Jamaica Rice Milling Company Limited (JRMCL) and the Guyana Rice Development Board (GRDB).The GREMA in a release said the deal will effectively limit importation 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, that in reality, the reverse is likely to take place,” the exporter and millers’ body said.
It said firstly that the 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, to date, the GRDB 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.”
Second, the GREMA said, since the agreement artificially fixes local export prices to Jamaica above the existing free- market price, there is a real fear that it can lose its share of the Jamaican market to Suriname, which can continue to offer rice to Jamaica at the existing free-market price.
“Third, 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).
“Fourth, 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 is of the opinion that when the above factors are taken into consideration, the GRDB-JRMCL agreement in its present form and the contracts that millers are being required to sign with these two Jamaican companies would result in the local rice industry being in a worst financial position than it was 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 seeks Government’s intervention in helping to resolve this situation as soon as possible,” the GREMA said.