Georgetown: Guyana Rice Development Board (GRDB) General Manager Jagnarine Singh said moves are afoot to further amend the Rice Factory Act to deal with millers who owe farmers outstanding payments.
Speaking at a farmers’ meeting at Riverstown Nursery School, Essequibo Coast recently, Singh said a proposal has been sent to the Agriculture Ministry, advocating alternative penalties to closing down the operations of millers in default.
“Closing the mill will not ensure farmers get paid, we need something more staunch. There must be a piece of legislation intact to deal with millers, shutting down the mill is not a desired result, paddy has to sell and on time, farmers need to be treated fairly and GRDB would ensure this,” Singh pointed out, even though he refused to say what are the alternatives he wished to propose.
On that note, he said Golden Fleece Rice Investment owes some 108 farmers in excess of $89 million in outstanding payments.
Singh said the GRDB, along with the Agriculture Ministry met with the Bankers Association recently and negotiations have commenced for financing the sector.
The General Manager said the value of paddy a few years back was $8 billion but today, it is in excess of $50 billion. He made it clear that the GRDB is not responsible for assisting farmers in the form of loans and advances; however, the Government through the Agriculture Ministry is trying to assist millers so that farmers can be at ease.
Loans
Singh also reminded farmers that at no time will the GRDB give loans to millers for expansion purposes, noting that the aim is to help millers clear outstanding debts owing to them.
He said when a farmer sells his paddy, within 42 days he should be paid.
Singh also spoke at length about the new market in Panama and the Venezuelan deal. He also said the GRDB will continue to bring fertiliser to assist farmers.
“Securing rice markets is not that easy; it’s not like supermarket you go in and pick up, there are challenges,” Singh explained.
Guyana Rice Producers Association (RPA) General Secretary Dharamkumar Seeraj said a lot of emphasis will be placed on timely payments by millers.
He said despite the fact that the industry has many challenges, farmers are moving to cultivate more and more lands, noting that there has been an increase in productivity compared to previous years.
“There are 23,200 acres under cultivation despite the challenges, we have to examine what is driving the process to cause farmers to plant more, against all that’s happening, people still continue to invest,” Seeraj said.
Seeraj, speaking on the price for paddy, said the Government forced millers to pay $3500 per bag during the last crop with some assistance.
The General Secretary said a number of millers are finding it difficult as everyone wants to tap into the Venezuela market, pointing out that it is not possible as the market can only accommodate a certain quota.
Seeraj said the Panama market does not assure more money for paddy, but is a market nonetheless. “We are trying to get all the money, timely payment is better than high price,” he said, noting that farmers would be happy if they are given a price and are paid promptly.
“We are working to resolve the financial issue, this crop, from RPA perspective, we are advocating to get a minimum price as last crop,” Seeraj noted.
Region Two Chairman Parmanand Persaud said he is cognisant that the region is faced with poor drainage and irrigation, and has requested the National Drainage and Irrigation Authority (NDIA) to send a few excavators to the region.
The Regional Chairman commended the efforts of the GRDB and RPA on their frequent outreaches to farmers, and issued a warning to farmers.
“Don’t ever take the rice industry into political hands, make decisions for ourselves,” he said. Farmers were of the view that if some mills have to close, they should close. They also complained of having problems accessing their monies at Demerara Bank.
Singh urged farmers to hold discussions with Demerara Bank as well as with millers.
Meanwhile, some farmers on the Essequibo Coast are in the process of harvesting.
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