Government last week commissioned a $14.3 million drying floor at Walton Hall to boost rice production in Region Two and plans are in train to establish two rice mills, one in the same region and the other on the Corentyne.
A Government Informa-tion Agency (GINA) press release said the facility is one of 12 government has built across the country. It is expected to benefit about 300 rice farmers. In his address at the commissioning ceremony Minister of Agriculture Robert Persaud said the investment will enable sustainability and competitiveness in the industry. He noted too that while it is important for other districts to have access to drying floors it is necessary for Essequibo Coast farmers since there are limited buyers.
“Farmers are also left to the mercy of the millers because they do not have a place to dry and if you do not dry your paddy the high moisture content will lead to damage and as a result destruction to your produce,” Persaud said. The drying floor will enable farmers to access good seed paddy which is necessary for high crop yield.
Persaud said this initiative is another government effort to revive the rice industry which was in severe danger after the termination of the Other Countries and Territories route that allowed special access into the European market. “Working with the banking community and in fact close to $2B worth of indebtedness with representation from the RPA and special facilities set up we are able to defer and in some cases waive those payments and that helped farmers to continue,” the minister said. Government had also prepared infrastructure to provide proper drainage and irrigation to assist rice farmers during cultivation.
According to GINA, government in collaboration with the European Commission had started a rice competitiveness process that allowed the rice industry access to about $3 billion. Persaud emphasised that resources from that allocation saw the establishment of the Dawa Pumping Station and the erection of sluices.
He also said that prior planning and implementation of programmes and projects allowed government to tackle the El Nino situation across the country, particularly in Region Two. Farmers have been able to access irrigation water from the Dawa Pumping Station during the dry spell.
Another segment of the project was a special loan facility that was set up and administered by GBTI where between 6-10% of farmers and millers were allowed access to support valued at about $1.6 billion. Persaud reiterated the need for “fair play” in the relationship between farmers and millers and noted that the Rice Factories Act has been amended to prevent exploitation of farmers by millers. However, he noted that farmers also have a responsibility to be reasonable with millers.
Persaud said he had been advised that millers were paying $3,500 per bag of paddy and hopes that this continues. He said observations have also been made that there was a move to create a cartel situation and he noted that the Rice Producers Association (RPA) was told to report the matter to the Competition Commission.
Meanwhile, the minister noted that the sugar industry is also being affected by the cut in the European Preferential Agreement but like the rice industry, it will be revived, the minister said. Persaud said it is important that the local rice industry is competitive as close to 75% of locally produced rice is exported.
He said the survival of the industry depends on the ability to compete on the international market with countries such as the United States.