With intense rainfall expected over the next two days, rice farmers are advised that there is a high risk of flooding, Minister of Agriculture Robert Persaud has said, but despite this Guyana is expecting another year of high production.
During a meeting with exporters, millers and farmers yesterday, Persaud said that a flood warning is in effect. Irregular showers, heavy at times, are expected over the next 48 hours, he added, noting that it had been pointed out earlier that if the current La Nina conditions persisted then farmers would be affected.
The current crop is approximately 1% harvested and if the current rainy conditions continue then some rice farming areas will suffer some loss. Already Regions Five and Six have felt the effect of rainfall. Just over two weeks ago, the rice fields of some Berbice farmers were under water. While the rice was not lost, the fact that the plants were under water for a few days will result in low yields.
However, Persaud assured farmers that the Ministry of Agriculture (MoA) is doing all it can to monitor the situation. He noted that over the last two years the rice industry in Guyana has done well. Last year, according to him, Guyana exported in excess of 325,000 tonnes and this year the industry hopes to export in excess of 367,000 tonnes.
Continuous efforts, according to Persaud, are being made to “break into” the markets of CARICOM (Caribbean Community) and neighbouring South American countries. Guyana has been supplying rice and paddy to Venezuela over the last two years and is making efforts to get a stronger hold in that market.
Persaud, however, disclosed yesterday that almost 30,000 metric tonnes of rice and paddy are yet to be shipped to Venezuela under a second deal, worth US$38 million, which was inked last August. He explained that final arrangements were being made to see that shipping of the remaining amounts of rice and paddy commences by the end of next week. There is 6,500 tonnes of white rice and 22,000 tonnes of paddy still to be supplied. This amount, Persaud explained, was left over because many of the parties who promised to supply under the deal did not do so. However, he stressed that this failure to supply was not due to a shortage of the grain.
On August 26, 2010, the MoA signed the second agreement which would see Guyana supplying 50,000 tonnes of paddy and 20,000 tonnes of white rice to Venezuela. Almost half of the paddy under the deal is still to arrive in the Venezuelan capital of Caracas.
Persaud further said that MoA will be releasing an advertisement in the media shortly, inviting farmers’ groups and millers to bid for spots to supply the remainder of the rice and paddy under the Venezuelan deal. The MoA, he stressed, is doing all it can to ensure that the process of supplying remains transparent.
The Agriculture Minister explained that he recently discussed the deal with Minister of Foreign Affair Carolyn Rodrigues-Birkett and steps are being made to “tie-up” the rest of the deal and make some modifications. The prices, he also noted, “are looking well.” Under the deal, suppliers will be paid US$420 per tonne of paddy and US$700 per tonne of white rice.
Farmers and farmers’ groups, Persaud said, will be given priority in the selection process for supplying under the deal. The MoA, according to him, is still trying to get more farmers involved. However, he said that this does not mean that the ministry will be discriminating against the tradition suppliers. The process for selecting suppliers, Persaud said, is “clear and scientific.”
There have been issues involving logistics, the minister further said, like the time it takes to offload vessels in Caracas. There is usually a line-up of vessels in the port, Persaud noted, and it takes the vessel some time to offload and return. These difficulties have existed since the first multi-million dollar deal was inked in 2009 and are not likely to be sorted out any time soon.
Dr Peter de Groot, Chief Executive Officer-Production of Fairfield Rice Incorporated subsequently noted that it was not safe to buy paddy and then store it for more than six months before supplying. He urged the minister to see that arrangements were made as soon as possible to ship the remaining rice and paddy to Venezuela. He also suggested that some new specifications should be knitted into the GRDB contract which suppliers sign. A penalty, de Groot said, should be instituted to deal with those persons who promise to supply rice and paddy but fail to do so.
Meanwhile, Persaud said Guyana has the capacity to supply its existing markets, to expand them and to take on new ones as well. White rice is still being supplied to Jamaica, he said, and added that there have been certain comments about a shortage of the grain locally. Thousands of tonnes are exported to Jamaica, Persaud stressed, and the statements of a shortage “is a bit of a myth.”
A team will be leaving for Jamaica on March 22, he said, to discuss the issue and to bargain for better prices. Millers and exporters are invited on the trip as long as they stand their own expenses, Persaud stated. The team will then travel to Trinidad on March 25 for discussions of similar type.
Trinidad and Tobago is another major market for us in the Caribbean, Persaud noted. Close to 22,000 tonnes were exported to that country last year, he said.
Based on the current trends, Persaud further said, prices are expected to be on the high end. However, one miller stated that it was too early to anticipate high end prices since there is a possibility that in five to six month there may very well be a significant drop.
However, Persaud assured that once suppliers maintain consistency, quality and continue along their path of diversification, then Guyana will have no need to worry about the lack of good prices.
