Georgetown: A team from the Guyana Rice Development Board (GRDB) led by the Minister of Agriculture, Dr. Leslie Ramsammy, concluded negotiation of the 2015 Rice Contract with Venezuelan Authorities this week.
Minister Ramsammy and his team had intensive discussion with their colleagues in Caracas and agreed on the terms for shipment of rice to Venezuela, with shipment to coincide with the beginning of the harvesting of the first crop of 2015. The first harvesting is about to begin and the first shipment to Venezuela will take place just before harvesting gets into full gear.
Venezuela will purchase an amount similar to the 2014 amount, which is close to 200,000 tons of paddy and rice. The 2015 amount with a variation in the proportions of rice and paddy will amount to about the same amount as 2014. The price for paddy and rice agreed on will also be similar to 2014.
In 2014, exports to Venezuela accounted for about 34% of the total production of rice in Guyana. It is expected that export in 2015 will be about 30% of production, even though the actual amount will be approximately the same. This is because we expect a bigger production in 2015.
Together with increased export to the regular markets, newer markets in Central America and Africa will be added to the increasing destinations for Guyana’s rice.
In 2015, local consumption will see a dramatic increase. The rice cereal factory in Essequibo will be operational by the second crop. In addition, a rice flour factory will become operational also by the second crop this year. Already, we have identified an export market for rice flour.
Expectation for 2015 for the rice industry is an exciting one and we are thrilled that Venezuela continues to be a vital part of our rice industry.
In the meanwhile, we are working with various stakeholders to address some of the ongoing challenges, such as timely payment to farmers. The 2014 production saw farmers selling approximately $44B in paddy to millers. As of today, there is an outstanding amount of close to $300M owed to farmers. Throughout the year, the Government has made available to farmers an amount revolving to about $5B. Presently, we are completing all outstanding payments so that as the new harvesting begins, farmers would have been paid fully for the $44B they sold in 2014.
The 2015 value for paddy is expected to be between $45 and $50 B; it is expected that paddy production will surpass one million tons for the first time in our history. The Government is working with the stakeholders that this enormous amount of about $50B can be paid on a more timely basis.
It should be noted that between export and local consumption most of the carry over rice from 2014 has been accounted for. Thus, as the new harvesting takes place, stocks will be replenished.
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