While welcoming the government’s plan to provide $23B to the rice sector to ensure payments to farmers, former president Bharrat Jagdeo has questioned the source of the funds.
At a press briefing at Freedom House on Tuesday, Jagdeo called on the government to explain where the billions will come from, given its previous pronouncements that the PetroCaribe Fund was empty. He said after “scouring” the 2015 budget estimates, he was unable to locate where the money was being allocated from.
Jagdeo added that in the Finance Minister Winston Jordan’s own words the biggest driver for expenditure was the subsidy for the Guyana Sugar Corporation, which is $12B.
The former president noted that if GuySuCo was the largest driver of expenditure, the money for rice farmers would have to be accounted for.
He speculated that the government would utilise PetroCaribe financing for the rice farmers, while drawing it under an additional line item in the budget estimates. “I am just speculating. I am happy, in fact, I am hoping it is real money…$23B will allow APNU to now, to pay the $6,000 and $9,000 per bag of paddy that they promised the farmers,” he said.
Jagdeo also stated that the government’s plans fell in line with the PPP/C’s initiative to establish a rice stabilisation facility so he would not be too critical of the move to assist rice farmers.
He said that the opposition party would in fact be encouraging rice farmers to collect on the government’s promise sooner than later.
With the conclusion of the Venezuelan Rice Agreement in November of this year, the industry is seeking new export markets for its high production.
The first crop produced over 360,000 tonnes of rice. Last year, Guyana produced over 635,000 tonnes.
Last month, the government held a rice conference to address some of the issues that the industry will be faced with but many millers and farmers called it a talk shop with very little substance and answers.
Farmers said speakers, including President David Granger, Agriculture Minister Noel Holder and newly-appointed Chairman of the Guyana Rice Development Board Claude Housty, were unable to answer the immediate question such as how much farmers can expect to make per bag of paddy, if the government or millers were able to find lucrative large-scale markets and what the future would look like for farmers looking to expand or contract.
Recently, millers were called upon to collect their rice at the wharves due to the still volatile situation with Venezuela’s shipping schedule.
Since mid-July, over 270 containers have been in limbo at the wharves here.
