Over 204,000 tonnes of rice has been harvested for the second rice crop and with 36 percent left to reap, the Guyana Rice Development Board (GRDB) is extremely pleased with this year’s achievements.
Deputy General Manager of the GRDB Ricky Ramraj told Stabroek News that up to last week, rice exports exceeded 334,000 tonnes. He said that with the security of rice markets across the region, Guyana is on track to export more. “The general feedback is that people like our rice, when they get it they are very happy with the quality,” he said.
However, he disclosed that there have been some technical issues with the 120,000-tonne rice deal with Ghana. He noted that the increase of Ebola scares globally has had a significant impact as it relates to formalising the deal with the West African country, which was announced earlier in September.
While Guyana remains keen on the rice deal with Ghana, recent developments with Nicaragua and Brazil have opened additional venues to secure exports. Ramraj disclosed that under the trade bloc MERCOSUR – of which Guyana is an associate member – 10 000 tonnes of rice can be exported to Brazil without being taxed.
The GRDB official stated that the Ministry of Foreign Affairs is working alongside Brazil to facilitate better shipping arrangements and to see more rice exports making their way south. He said that while the Ghana market is not being pursued “vigorously” due to the Ebola outbreak, shipments to Nicaragua and Brazil have already commenced.
Ramraj pointed out that both countries are looking at Guyana’s ability to ship in a timely manner before fully committing to any further arrangement. As it stands, for the remainder of the year, he said, Guyana is expected to ship 20,000 tonnes of rice to Nicaragua. The official disclosed that 4000 tonnes of paddy had already been shipped, but pricing is still being finalized.
The deputy GM declined to disclose the amounts that are being discussed per tonne of rice but did say that all of Guyana’s rice deals are currently higher than the world market price for rice which is approximately US$457 per tonne for white rice.
He stated that the goal is to get the rice moving and pointed out that over 113,000 tonnes of rice was left over from 2013. Ramraj told Stabroek News that with 36% of the harvest left, the GRDB is anticipating a final export figure of between 480,000 to 490,000 by the end of the year. Last year, rice exports amounted to 396,000 tonnes. He stated that while the markets that were being targeted are small, the quality of the rice means that Guyana is sure to expand on all fronts in 2015.
Venezuela Deal
As it relates to the Venezuela deal, Ramraj said that 108,000 tonnes of paddy and rice have already been shipped to Venezuela under the Rice Agreement and 42,000 tonnes remain. He said that in terms of white rice, 6000 tonnes is yet to be shipped and a boat would be coming today.
Speaking on the costs associated with shipping regionally, the GRDB official highlighted that logistical costs continue to be a source of frustration. Regional transportation has been problematic within the Caribbean for decades and the issue has been raised incessantly by members of the Caribbean Community.
At a recent Ministerial Meeting of the Caricom Council for Trade and Economic Development (COTED) held during the Caribbean Week of Agriculture in Suriname, members once again addressed the need to get the Transportation Commission to home in on effective measures to aid in better maritime transport cost and measures.
Meantime, Ramraj countered recent accusations by Chief Executive Officer of the Alesie Group of Companies Dr Turhane Doerga that the contracts to supply white rice and paddy under the Venezuela deal was corrupt. The Alesie group runs Ruimzeight Rice Processors Inc.
Ramraj stated that the Guyana Marketing and Export Association meets and a small committee sits and looks at the allocation and the capacity of the various millers depending on their level of intake from farms. He said that the GRDB looks at many aspects including the millers’ ability to pay farmers in a timely manner before they are given contracts.
Some of the names listed on the document showcasing various millers’ expression of interest were millers that various farmers have complained about to the Agriculture Ministry as being delinquent payers. Ramraj noted that due to the shipping process, farmers could not be paid all at once and the majority of farmers understood this situation.
