Latest update March 19th, 2024 12:59 AM
Mar 01, 2014 News
– Believe rice millers using Venezuela unrest to fleece them
Local rice farmers believe that the unrest in neighbouring Venezuela is the reason for millers dropping the price for paddy and refusing to stand the transportation cost. They are hoping that the authorities would step in to ensure fair treatment.
Venezuela happens to be Guyana’s most lucrative rice market, which has allowed farmers to enjoy high prices for their produce within recent years.
Though harvesting began this week, several rice millers have not yet set their prices for paddy while others have reduced their prices to the disadvantage of farmers. In fact, over 220,000 acres of land were cultivated this year and the industry is expecting over 260,000 tons of rice.
When Kaieteur News contacted Fairfield Mills in Mahaicony, yesterday, a representative said that the company is currently paying $3,000 per bag of paddy until the Venezuela/ Guyana rice agreement is concluded. However, the sum being offered is not final and the difference will be paid to farmers at a later date when the agreement has been concluded. The farmers have to pay the trucks to transport their paddy.
Meanwhile, a representative of Abdool Hakh & Sons Milling Company of West Coast Demerara said that it has not set a price for a bag of paddy because famers have not begun harvesting in their district,
However, the Ministry of Agriculture in a press statement said Guyana’s rice export to Venezuela is expected to resume once all the logistics has been completed between the two Governments.
Agriculture Minister Dr. Leslie Ramsammy stated that the agreement which is presently in its final stage remains a significant one to Guyana. Last week, a Memorandum of Agreement (MOA), was inked between La Casa (on behalf of the Venezuelan Government) and Guyana’s Ambassador to Venezuela, Mr. Geoff Da Silva.
The agreement is near completion and includes the purchasing order and shipment schedule. With the 2014 rice harvesting already commencing, shipment of rice is a critical part of the industry. Already shipment is ongoing to Europe, the Caribbean and to new destinations, the statement said.
Farmers who were disheartened by the millers’ behaviour have found comfort in the Ministry’s release but are worried that the reduced cost for paddy would remain, since millers are the ones who set the price and conditions.
Millers in Berbice have dropped their prices, forcing farmers to sell for the lower prices because of limited storage capacity.
Nand Persaud and Co. Ltd, one of the largest rice millers in Guyana, dropped its price from around $60,000 per ton of extra ‘A’ grade paddy last year to $55,000 per ton of extra ‘A’ grade paddy this year. The company is also offering $54,300 per ton of ‘A’ grade paddy and $53,500 per ton of ‘B’ grade paddy. In addition, the company is no longer absorbing the transportation cost .A representative of the company could not say why the company reduced its price or why it is no longer taking on the transportation costs.
“It is highly unlikely that any farmer would receive an extra ‘A’ grade for his paddy and with us now taking on the transportation cost the farmer could essentially get $3,000 per bag of paddy. This is exactly what farmers do not want,” a farmer said.
Yesterday, Kaieteur News was unable to obtain comments on this issue from the Minister of Agriculture, Director of Guyana Development Board Jagnarine Singh or the General Secretary of the Guyana Rice Producers’ Association, Dharamkumar Seeraj.
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