…some farmers have no money to plant a next crop
General Secretary of the Guyana Rice Producers Association (RPA), Mr. Dharamkumar Seeraj, told the Guyana Chronicle that another miller, Alesie Rice Company, is adding to the frustration of rice farmers.
“Over the weekend, we learnt that Alesie had not paid some farmers and right now we are assessing how much is owed so that we can make representation for those affected,” he said.
Seeraj noted that Mahaicony Rice Mill Limited (MRML) had released some cheques to farmers Thursday last.
And the RPA is pursing action at different levels to ensure that farmers are paid for their paddy.
Except for limited contact with MRML General Manager Ms. Tara Ghani, Seeraj said there has not been much communication with the company.
“I think the lack of communication is mostly because much depends on the owner, Mr. Jai Deni, who is not in the country,” Seeraj said.
The embattled company has been taken to court by several farmers who sought legal action as the only way to secure what was owed to them.
MRML had as much as $300M outstanding in payment for the last crop. The company reportedly controls 40 per cent of the paddy purchases in Guyana and has mills across the country.
Seeraj noted that RPA will continue to support farmers who choose the justice system as their recourse.
Legal support is also available from the Guyana Rice Development Board (GRDB) and moves are being made at the policy makers’ level to ensure that the interest of the small man is protected.
In 1998, government enacted the Rice Factories Act, No.8 of 1998. The Act seeks to regularise the construction of mills, paddy grading and purchasing, and improve the overall quality of rice exports. On January 11, 2007, the Amendment of the Rice Factories Act was passed in the National Assembly which made it mandatory that millers pay a minimum of 95 percent of outstanding amounts owed to farmers at the end of the year before their mill/export licences are renewed.
At present, the Ministry of Agriculture is taking steps to amend the Rice Factory Act so that rice farmers can have added protection. The amendment is expected to ensure that millers pay every farmer 95 percent of what they owe before they receive a licence. This must be completed within 42 days of supply.
The Rice Factories (Amendment) Bill 2010 was read for the first time in the National Assembly in July.
In the meantime, farmers are frustrated at the delay in their payments which are affecting not only their next crops, but more importantly, the support of their families.

Farmers’ Say

The Guyana Chronicle was able to speak to some of the farmers in the Region Five (Demerara/ Mahaica), many of who agree that the MRML has “bitten off more than it can chew.”
Other farmers told the Guyana Chronicle that they have not sent their paddy to Mahaicony Rice Mill.
They noted that they sent their rice to other millers, including Saj Rice Company Inc.
A farmer of 30 years, Mr. Dewan Shrikant, said he rents his harvesting equipment to small farmers who cannot afford it and their non-payment has a domino effect.
“I harvested for some people and they ship to Mahaicony, but they can’t pay me and I had to stand all the overhead costs of harvesting. So now I have to end up using money from my pockets,” he said.
Shrikant noted that he is owed some $700,000 since April.
He said, “This cannot work and for some people if you owe the banks you dead.”
Another farmer, Mr. Brijedat Ramnarace said he is owed some $2M since April.
“I sell over 700 bags of paddy to Mahaicony and I get some money but it is the same problem over and over…Mahaicony Rice Mill used to be the place to sell your paddy, but not now,” he said.
Ramnarace added that his regular supply to MRML used to exceed 700 bags, but noted that the Mill’s problems caused him to supply other millers.
“I have my current crop to look at and things will be difficult,” he said.
When asked about using the courts as an option, the farmer stated that he is, “not sure whether it will be worth it.”
Mr. Khemraj Persaud, more commonly known as KP, made it clear that “everyone needs money.”
“Half of my paddy gone to Mahaicony and they owe me $1.5M. They paid me $200,000, but I am still waiting for the rest.”
He explained that farmers need to get back to the ground and need their money to do so.
Persaud said, “Once the mill show the commitment to pay I won’t have to think about the courts, but now I am waiting to see what happens.”
This ‘waiting period’ has significantly affected some farmers, so much so, according to Mr. Nazeem Rahaman, that he does not have another crop.
“Mahaicony has $524,000 for me. They only pay me $200,000 and without the rest you can’t really do anything. Every time I call they say they don’t know when I will get paid…I got to wait and see,” he said.
He added that he is not considering legal action because that might “take too long.”
Rahaman said in most of his dealings with the MRML he has had this problem of non-payment, only this time he has been “set back” in a major way.
The Guyana Chronicle found that the farmers are very much in need of their monies, and understandably so.
It was noted by this newspaper too that the MRML, on a case by case basis, has particular arrangements with some of the farmers to facilitate payments.
Farmers included in this arrangement declined to say much about their plight and concurred that they did not want to “rock the boat” and do anything that would jeopardize speedy payments.
Repeated attempts by this newspaper to contact MRML General Manager, Ms. Tara Ghani, proved futile.