The mood of scores of rice farmers on the Essequibo coast strikes a distinct contrast to that of other businessmen who appear upbeat about the vibrancy of the Cinderella County’s economy.
Millions of dollars, owing to them for paddy sold to Mahaicony Rice Mills (MRM), some, as long ago as 2010, remain outstanding and while the intervention of the Guyana Rice Development Board (GRDB) has resulted in partial settlement of the considerable debt, substantial sums still remain unpaid.
It is not a circumstance that is unique to farmers on the Essequibo coast. Their counterparts in Berbice share the same fate; not that it brings them any measure of comfort. The outstanding monies – at least some of it – had been targeted for reinvestment in subsequent rice crops so that for some farmers it is now not just a matter of an outstanding debt but a circumstance that has slowed down their operations considerably.
The farmers concede that the intervention of the GRDB has been helpful though they insist that government’s responsibility in the mater will not come to an end until payments are made in full. They have expressed a willingness to meet with the ‘top man’ at MRM but no one appears certain as to where he might be found.
Since earlier this year government withdrew the licence for the MRM to either buy paddy or sell rice and suspended operations at both its milling facility and outlets on the coast. The farmers’ protests have pulled the regional administration into the affray and, perhaps understandably, Regional Chairman Parmanand Persaud appears reluctant to become involved beyond, as he puts it, “being briefed”.
Deputy General Manager of GRDB Ricky Ramraj who concedes that he can hardly help but be involved is more forthcoming. An outstanding amount of $600 million has now been whittled down to around $60 million. And in a new twist to the saga this newspaper has learnt that GRDB is now turning to a foreign entity, reportedly a shareholder in MRM in an effort to secure the remaining monies.
It is unlikely that there are any other companies with reputations as sullied as MRM’s. The farmers on the Essequibo Coast never seem to tire of staging small protests of one kind or another or of displaying cheques paid to them by the company which have been dishonored by the commercial banks. It surprises no one that the company is reportedly seeking to sell its assets and move on. It is inconceivable that it will be allowed to do business here again.
MRM used to be one of the ‘big players’ on the milling side of the rice industry. Ramraj said the company used to purchase around two million bags of paddy per crop across the sector, though he is quick to add that its exclusion has had “a minimal effect” on either the purchase of paddy or the availability of rice. Recently expanded rice mills and new ones have absorbed the volumes of paddy previously sold to MRM.
On the Essequibo Coast some of the farmers have turned to the milling facilities offered by Imam Bacchus & Sons. It is a smaller facility but at least the concerns that had been generated by MRM no not apply there.
Nor does Ramraj envisage that the MRM headache will impact on overall rice production this year. In 2011 the industry produced 402,479 tonnes of rice a feat which Ramraj says it seeks to at least emulate this year.
Initiatives by the GRDB to go as far as possible towards realizing full payment to farmers have included overseeing the production process at MRM and directing the proceeds from sales towards the liquidation of the company’s debt. That includes settling the debts still outstanding on account of the cheques that have not been honoured by the banks.
