Latest update May 7th, 2024 12:59 AM
Jul 28, 2015 News
– Farmers call for price guarantees, fuel subsidies
By Jarryl Bryan
In keeping with its hundred days plan, A Partnership for National Unity/Alliance for Change (APNU+AFC) Government held the National Rice Industry Conference under the theme ‘Sustainable Development Amidst Challenges’, yesterday. The venue was the Arthur Chung Convention Centre, Liliendaal, where President David Granger addressed rice farmers and tried to assuage their concerns about the industry.
And in turn, rice farmers and millers laid out the ailments of the industry. They sought a Governmental guarantee of price per bag of paddy of at least $3000, better maintenance of infrastructure, fuel subsidies and an Agricultural Development Bank, among other things.
While he owned up to the challenges the industry faced, among them high costs of production, relatively small international status, the bailouts the industry has been receiving from Government, and its continuing search for markets, Granger rejected the widespread view that rice was in a state of crisis.
“Rice is not in a crisis.” Granger affirmed. “So we must disabuse ourselves of the view that the industry is on the point of collapse. It faces challenges because of years of neglect, institutional decay and bad decisions.”
Issuing a call for all the key stakeholders to come together through consultation and collaboration, Granger sought to emphasize that the culture of suspicion and tensions was doing no good for the industry. However, he reiterated that the problems in the industry could be overcome through co-operation. Granger added that the Government will have to continue its search for new markets, find ways to lower production costs, and stated “we are good at selling rum; we must also be good at selling rice.”
“I am confident that all the problems in the industry could be successfully addressed. I am confident in the future of rice.”
Farmer’s point of view
A walkthrough with farmers and millers revealed that Guyana’s rice industry has indeed become too costly to justify their retained stake in it. Notwithstanding the complaints, there were a few recommendations by the affected rice farmers.
One farmer, Kawal Ramraj, laid out exactly why the rice industry had become too costly for him to maintain production levels.
“My cost of production is $150,000 per acre and the average farmer in Guyana is not getting forty bags per acre. And forty bags per acre, at $3000 per bag will give me $120,000. Therefore I am working for $5000 a bag per acre. So there is no payment for the farmer’s labour.” He complained.
“If I buy equipment, how would I pay for it? This industry is going to decline and decline significantly. I am not going to plant back. And I see no future unless the Government makes some kind of intervention.”
Asked about the interventions needed, he stated that something the Government must do was to facilitate a guaranteed price, through paddy, of $3000 and over.
Anything under, he said, and rice farmers could not survive. He also called for the Government to subsidize the price of fuel to farmers, in addition to the removal of duties on manure.
Meanwhile, another farmer identified as Lochan, commenting on the conference, noted that while laying out the varieties of rice that would give fifty or sixty bags per acre (which was indeed discussed in the conference) was all good, there were other important factors to be considered, factors that the Government had direct responsibility for.
“Proper maintenance and operation of infrastructure, (including) dams, drainage and irrigation is necessary. There are Regions like ours (Region Three) that are delinquent in maintaining their access dams, drainage and irrigation system. This impacts the rice farmers.
“While rice production is based primarily on the cost per bag of paddy, the other infrastructural input helps to reduce the stress factor.”
He noted that with the current cost of production, $3,500 per bag was more than reasonable and was something the millers ought to pay at this point in time. According to him, there were some crops in the past where millers made money.
“It goes hand in hand. If your famers can’t produce, there would be no millers.” He said. “We are at a new period in this Country where we have to relook things, not just keep things that we acquired sometime in the past. It’s all about making life for the farmers easier”
Miller’s point of view
According to one miller, R.M. Persaud of Leguan, the Agricultural Bank was necessary in order to assist with late payments to farmers. He noted that rice had been shipped to Venezuela since before elections, but resulting payments had come in fragments.
He added that with the Venezuelan market, which had accounted for 34 per cent of the overall rice exports, payment had been more regularized. However, with that market being in jeopardy, it was necessary to get another outlet.
“But we’re not getting the price. The Venezuela price was one of the best prices in the whole world. Guyana rice can sell (quickly), but it’s the price.”
He also added to the debate of the price per bag of paddy, querying how it was possible for a farmer to replant if they were paid $1500 per bag of paddy.
“If you pay farmers $1500 per bag of paddy, they can never plant back? They can’t replant.
So you are looking for markets that can pay the farmers so they can get reasonable money. We pay $3000 in production for paddy (per bag). So if farmers are paid $2,200 and $2000, they can’t live with that.”
But he pointed out that the other major markets- CARICOM, Haiti and local offered the same price.
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