Government moving to levy on Mahaicony Rice Mills
GOVERNMENT is now seeking legal advice to levy on the assets of Mahaicony Rice Mills (MRM), if outstanding debts to farmers are not paid.
Agriculture Minister Robert Persaud, who made the disclosure at a media briefing last Friday, said his ministry is very concerned about the issue because a substantial amount, of $240M, is still due.
He said: “If the law permits, we will be moving in on the assets of this company because we know that it has exported the rice and found markets but still the famers have not been paid.
“This is a repetitive behaviour by Mahaicony Rice Mills and we are urging farmers to take legal actions against the company. Free legal advice will be provided by the Ministry of Agriculture,” the Minister said.
Mr. Persaud said a third amendment will be made to the related legislation to take effect early next year.
He said Government is looking at ways of compensating the farmers and one such is the possibility of levying on MRM assets, to take 10 per cent of its gross turnover.
Persaud said, however, the action is only intended for millers who are repeat offenders, meaning they have failed to pay farmers for three consecutive years and MRM has already qualified.
He said licensing will also be dependent on how much outstanding dues a company has for farmers and a prerequisite would that, for every farmer from whom a company has purchased paddy, it would have pay them at least 95 per cent per annum. So, if the company does not pay that farmer, its licence will be revoked.
Persaud said he believes MRM is testing the Government to see how far it will go but the latter is willing to proceed as far as the law permits.
He said there are at least between 200 and 300 farmers who have not been fully paid for paddy sold to MRM.