Latest update January 17th, 2025 6:30 AM
US$48M rice deal sealed with Venezuela
Guyana has finalised a US$48M rice deal with Venezuela
– 2011 production expected to near 400,000 tonnes
By Leonard Gildarie
Government yesterday announced that it has finalised a US$48M rice deal, the largest to date, with oil-rich neighbour Venezuela. The agreement comes at a time when Guyana is set to also announce a bumper first crop of almost 200,000 metric tonnes (mt).
Speaking at a press conference at his office, Minister of Agriculture Robert Persaud disclosed that the latest contract is for 30,000mt white rice at US$800 per mt and 50,000mt of paddy at US$480 per mt.
Also at the press conference was General Manager of the Guyana Rice Development Board (GRDB), Jagnarine Singh.
GRDB, based on projections, has revised upwards its first crop rice target from 180,000 mt to 200,000mt.
This year, despite heavy rains in the first two months, the annual production is expected to surpass last year’s high of 360,000mt by almost 35,000mt.
According to the officials, the first shipments are expected to leave within days.
The payments to farmers come directly from Venezuela’s Petro-Caribe fund, an account established for oil payments from Guyana.
This latest agreement is the fourth of its kind since being brokered by President Bharrat Jagdeo and Venezuela’s President, Hugo Chavez. Venezuela had been thoroughly satisfied with the deal because of Guyana’s proximity.
Yesterday, Persaud assured that the prices are competitive when compared to the world figures.
Initially, farmers were cautious about the deal and despite invitations were slow to export directly.
However, authorities have confirmed that the Venezuela deal has seen a rush of applications, with GRDB now urging for farmers to form groups and export en bloc.
According to the Minister, Venezuela has evolved to now becoming a prized market.
While Guyana will continue to hold onto its CARICOM and other international markets, efforts will move to further diversify. However, Persaud assured, this will not be at the expense of losing any of the current markets.
Traditionally, Guyana has been exporting almost 75% of its rice to Europe, a situation that is gradually changing.
The Minister also disclosed that the country is moving to introduce more value-added rice products.
Rice demands have grown within recent months and Guyana, with improved strains, is poised to capitalize, the official said.
Addressing concerns about the transparency of the rice deal, Persaud was bemused, saying that the contracts are all public knowledge with advertisements for rice farmers to have a chance to cash-in being widely circulated.
Issues of delays at the Venezuelan port that cost Guyana huge sums of demurrage fees are also being addressed, Persaud asserted.
Both countries have technical teams in place to ensure that the quality of rice and paddy are of the required standards.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
No conflict of interest exists
Peeping Tom… Kaieteur News- Accusations of conflict of interest have a peculiar way of rising to the surface in Guyana.... more
Clarifying misconceptions about the Panama Canal
Sir Ronald Sanders (Antigua and Barbuda’s Ambassador to the US and the OAS) By Sir Ronald Sanders Kaieteur News–... more
Weekend Cartoon
