Dear Editor,
According to Agriculture Minister Robert Persaud (KN, 31.5.08), the government has sounded a clear warning to the importers and distributors of fertilizers that it will not tolerate hoarding and unrealistic pricing, as the farmers have complained bitterly.
Before my accident as an extension officer with the Guyana Rice Producer’s Association (GRPA) in 2004 my job was to work along with the officers of GNBS in Region No 2. On our visits to all the importers and distributors we found that some of these entities were either short-weighting the fertilizers by five pounds or overcharging the rice farmers although they were receiving a waiver on taxes and duty from the government.
The reduction on these taxes never filtered down to the farmers and today the farmers are being asked to pay in excess of $10,000 for a bag of fertilizer (50kg) =110lbs on the Essequibo coast. I quite agree with the General Secretary of the GRPA that it is clear that there is a “mafia-type” stranglehold on the fertilizer being supplied to Guyana.
Unscrupulous importers and distributors are taking advantage of the rice farmers because they are getting high prices for their paddy, by driving up the price for fertilizers by 50 per cent, despite government slashing taxes and duties on fertilisers. Rice is more than a staple for us, it has become a way of life for every Guyanese in terms of food, employment, foreign exchange earnings, economic growth and so on.
The government cannot falter at this point in time. Rice farmers are toiling with harsh and back-breaking methods of production, and the government should encourage production in this food crisis and monitor the cost of fertilisers, fuel, bags, twine, pesticides, etc. There are many instances where rice farmers and small producers are exploited to the point of extinction, but no one will gain if the industry collapses. I would like to remind all stakeholders of the famous credo, ‘United we stand, divided we fall.’ We need a situation where everyone will be gainfully compensated for their effort in their drive to develop the industry.
An analysis of industry costs some years ago indicated that many producers were at least breaking even with their production costs; however, some small farmers were not recovering their total costs. While rice farmers are getting high prices after a long time of suffering in the industry, importers should not be allowed to unjustifiably drive up prices for fertilizers.
Yours faithfully,
Mohamed Khan.
Former Extension Officer ( RPA)
