-Persaud calls on farmers, millers to work together
Flat paddy prices and unpredictable export markets dominated a stakeholders meeting yesterday and Agriculture Minister Robert Persaud has called on rice farmers and millers/exporters to work together as the industry is forecasting difficult times ahead.
Persaud was at the time speaking at a meeting convened by him at the Ministry of Agriculture’s boardroom on Regent Road, in which rice farmers and millers had an opportunity to discuss their concerns. Rice millers and farmers from the different rice producing regions along the coastland, Two to Six, were present at the meeting with General Secretary of the Rice Producers Association (RPA), Dharamkumar Seeraj and Guyana Rice Development Board (GRDB) executive, Jagnarine Singh.
The Agriculture Minister stated that there exists a need for rice millers to be consistent and to ensure that rice farmers are given the best price for their paddy. He said that it is a fact that millers expend significant sums of money on their operations but stressed that without the rice farmers, the industry wouldn’t be there. He urged rice millers to be cognizant of the prices being offered on the international market, noting that whatever changes they may have to make, should be finalized to ensure the high export level of rice is maintained.
Singh told those gathered that within the past six months the local industry has seen a slide in prices for the commodity on the international market. He said this may be the result of several interventions on the international market, such as a ban on rice imports in parts of Asia. He said that last year saw a decline in the export of rice to Caricom countries as well as the European Union, markets which are valuable for Guyana’s rice. He summarized that the prices offered on the market, “are generally flat”.
Seeraj stated that rice farmers are going to be hard-pressed in the upcoming crop, noting that even though production is expected to be more than the last crop, the industry will have to grapple with several challenges, which he surmised, were as a result of the prices available on the markets today. He said if the weather holds, representation will be made to the Ministry of Home Affairs to give permission to farmers to dry their paddy along the road shoulders on the coastland.
At yesterday’s session, when the floor was open to those present, it was the dozen-plus rice farmers who were more vocal in voicing their concerns, some appealing to the millers to be more considerate where their livelihoods are concerned. One farmer stated that with the current state of affairs, rice farmers will be forced to seek other alternatives as opposed to the rice industry, since, according to the man, the $2500/bag price being paid by millers does not measure up to monies expended in the rice fields. He said after analyzing the local industry and its current state, he is of the opinion that the millers are earning a 75% profit while the rice farmer contemplates his next move with his little or no profit. He posited that the way forward is to have both parties (farmers and millers) work together, and “come down to a reasonable price”.
A representative of Mahaicony Rice Mills noted that there is not a steady demand for the commodity on the export market, as a representative of Nand Persaud & Sons Ltd echoed similar sentiments, stating that the $2500/bag rate available today is what his employers are working with.
One rice farmer noted that one has to look at the issue from the social aspect, stating that a number of persons depend on the industry for a daily income. As he displayed a copy of the Stabroek Business, of several weeks ago and which gave an indication of the state of affairs in the rice industry, the farmer, who has been in the rice industry since the 1970s, stated that as the millers are gaining huge benefits from the industry, it’s the farmers who are working at a loss.
Minister Persaud after listening to both sides said that one has to address the issue at hand to avoid a “cartel-like situation”. He explained that if some rice farmers can strike a better deal than their colleagues, such information needed to be passed on to their colleagues. He said this would allow farmers to “gauge what is going on’.
Persaud also lashed out at millers/exporters at yesterday’s meeting, stating that some millers have been “lazy” as he addressed the need for diversification of the market. He said that there is a need for the exporters to penetrate markets other than those available in Europe and Caricom, listing Mexico, Venezuela and Cuba as other viable locations the exporters can pursue.”The government is there to open doors, not to lift you and put you through the door”, Persaud stated. He said the administration is doing its part by formulating arrangements through regional protocols for the exporters to be able to search for such markets as he noted, “the government’s role is to ensure the industry succeeds”.
At yesterday’s meeting, a recommendation was made to have rice farmers, led by the RPA, and millers meet on a fortnightly basis to discuss their concerns, with the GRDB facilitating. Persaud named Mahaicony Rice Mills, Caricom Rice Mills and Nand Persaud and Company Ltd, as being big players in the industry and entities which can represent their respective regions at such meetings. The geographical basis, he noted, is to ensure that all the rice producing regions are covered.
Meanwhile, as regards Mahaicony Rice Mill’s indebtedness to rice farmers, Persaud stated that the payment arrangement between the entity and rice farmers, “has improved”. He said while some payments have been made, others are in train, stating that for rice farmers in Region 5, outstanding sums are expected to be settled by the end of this month.
The issue of payments between rice farmers and millers has been an ongoing one, with the farmers accusing the millers of placing more emphasis on their profits rather than being considerate. At the same time millers have been complaining that they are operating at a loss since they purchased paddy at fairly high rates but suffered because of the reduction of rice prices on the international market. The demand for the commodity on the international market is viewed by some in the industry as being the root of the problem and at yesterday’s forum one rice miller urged the government to be more pro-active in this area.
(Alva Solomon)
