Stating that rice is too big to fail, President David Granger yesterday urged rice farmers and millers to demonstrate their commitment to the industry by being proactive about marketing their product.
Indicating that the government will help, “This administration, through economic diplomacy will use its foreign service to continue to open new markets for rice,” he advocated, “but more importantly private exporters must demonstrate their own capabilities their own capacity to penetrate foreign markets.”
Addressing over 300 stakeholders in attendance at the National Rice Industry Conference, a fulfilment of one of the 100-day manifesto promises by the coalition government, the President noted, “The paddy farmers have already demonstrated their capabilities to increase production in response to markets so we need to look at the marketing problem.”
The President said it was necessary for farmers to reduce their production costs, for millers to increase their capacity and for vendors to promote value added.
While he spoke about the high production costs, the lack of markets, and the need for value added he said, “The administration does not come here with readymade solutions. We want to hear what the stakeholders have to say and what is practicable in our circumstances… We do not wish in the administration to usurp the role of the private sector. Rice production is a private business and we support private enterprise. The administration does not want to bail out the rice industry. We don’t want to become a banker for the overdraft exporters and millers. Our role is to establish a framework to provide a level playing field so that the industry can prosper.”
Granger told those gathered at the Guyana International Conference Centre at Liliendaal that rice is not in crisis. “We do have challenges yes, but we must disabuse ourselves of this view that the industry is on the point of collapse,” he stated.
The industry, he said, was facing challenges “because of years of neglect, institutional decay and some bad decisions, but we must make those challenges into opportunities for change.
“I am confident that the conference today will initiate a process of consultation and collaboration between the administration and the stakeholders in the industry to overcome those challenges,” Granger said.
“Rice is too big to fail. We have a vision for rice. We have a vision for the industry. We have a vision for the contribution that rice will continue to make in Guyana’s growth,” he added.
There was, however, a huge disconnect between the expectations of the rice producers and the stated role of the administration. While, the administration declared itself open to engagement, many in the audience were looking for the conference to provide tangible solutions.
Speaking to Stabroek News after the conference, farmers appeared conflicted.
One farmer from Black Bush Polder said that while the presenters at the conference were educated and came prepared it was the administration including Agriculture Minister Noel Holder who failed to appease the concerns many famers went to have addressed.
He said, “We want to know the prices we are going to get and where are the markets for these rice.”
The farmer said that the impending loss of the Venezuelan market which comprises 30% of Guyana’s annual rice exports was not sufficiently dealt with and the question and answer segment was cut short. He said many famers were concerned with scaling back, noting that the current world prices for rice and paddy do not look promising to guarantee them $3,000 per bag of paddy.
Another farmer expressed frustration that he was unable to ask his questions and noted that he wanted to ask Holder about the government’s plans for the immediate future given that the loss of the lucrative Venezuelan market meant an end to preferential pricing.
Farmers told Stabroek News that lowering production costs was very difficult and was not a short-term solution to what is expected to be a very difficult second crop payment schedule.
One farmer said that with the average cost of production being between $80,000 and $90,000 per acre, farmers needed well over $3,000 per bag of paddy to break even. He said he wished the conference had addressed more issues that are of immediate concern for rice farmers, especially small scale farmers who are directly tied to the crop and would need timely payments to sow the next crop.
Asked about a guaranteed price for farmers for the current crop, Holder told Stabroek News that farmers would be receiving $3,000 per bag of paddy as they did in the previous crop and queried whether this publication was provided with differing information.
The average $3,000 per bag that was being used by those at the conference was heavily criticised by farmers, who expressed that this figure was not realistic. They said millers are likely to use the end of the rice agreement with Venezuela as “another reason they don’t want to pay farmers what we are owed.”
While he did not address whether government had any plans to offer a bailout for or a subvention to the industry given the current world market price, Holder had stated during his presentation that a Rice Marketing Plan would be implemented. He did not divulge any components of this plan, however.
