Latest update May 6th, 2024 12:59 AM
Mar 03, 2014 News
The increase in rice cultivation by local farmers because of last year’s attractive prices may not work in their favour in 2014.
Local rice farmers have been complaining about the low prices millers have been offering for their produce. They have blamed the unrest in neighbouring Venezuela as the reason for millers dropping the price for paddy and refusing to stand the transportation cost.
However, according to an official from the Agriculture sector, economics at its simplest form is playing out in Guyana’s rice industry. The official said that over 220,000 acres of lands were cultivated for this rice crop and the industry is expecting over 260,000 tons of rice.
As such, the supply of rice has increased but the demand remains relatively the same. He said that farmers have been banking on the Venezuela market, which is a lucrative preferential market but there is only so much rice and paddy that market would take.
Speaking about the price set by millers, the official said that Government or any regulatory agency does not determine the price millers should pay. Authorities are also not involved transportation arrangements between the two parties.
When Kaieteur News contacted Fairfield Mills in Mahaicony, Friday, a representative said that the company is currently paying $3,000 per bag for 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.
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.
The Ministry of Agriculture in a press statement said Guyana’s rice export to Venezuela is expected to resume once all the logistics have 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.
GRA catch EXXON trying to hunch GUYANA over 11 BUS dollars in one shot!!!!
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