Essequibo rice millers owe Region Two farmers over $632m and the head of the rice board says that the government has made good on all payments so there should be no problem.
The government on Thursday released the names of five millers in Region 2 who owe paddy farmers in excess of $632M from the spring crop of this year. The government in a GINA release stated that it “empathises” with the farmers’ frustrations.
The government called on Wazeer Hussain of Dry Shore/KSCL to pay out $285,360,540; Ramesh Ramlakhan of Ex-Mouth, $156,584,455; Deonaraine (Evergreen), $135,000,000; Old Mac Guyana Inc, $28,300,000 and La Resource Rice Industry, $27,600,000 owed to farmers.
Speaking to farmers, Stabroek News was told that a gathering was held on Thursday outside of the Guyana Rice Development Board’s offices in Anna Regina to vent their frustration. One farmer told Stabroek News that he was so overwhelmed and really believed that a change in government would have resulted in some relief but this has not been the case.
He said that millers were expanding their production and their factories while farmers were still begging for their pay that was earned and deserved. He said that “every day I can go to Dickie [Hussain] fuh this money over $40M, me and my partner, but he nah wan pay.”
The farmer said that the millers have told the farmers that outstanding sums were because the government has yet to pay them. He said that this made no sense but any attempts to challenge the millers on their “bold face lies,” got him nowhere.
Chairman of the Guyana Rice Development Board, Claude Housty says that government has settled all of its financial obligations with rice millers.
GINA yesterday said that the GRDB Chairman joined the Acting General Manager of the GRDB Nizam Hassan and GRDB executive and miller Dr Peter deGroot for an in-depth examination of the local rice sector with the state information agency recently. According to Hassan “All the millers have been paid moneys that were owed to them by the Government of Guyana”.
GINA said that it was explained that some millers may still owe rice farmers but this is due to private contracts for other markets that they have exported rice to. Hassan said the GRDB “didn’t have those contracts”. The ongoing problem has been compounded by the fact that supplies were purchased at prices based on the demand and prices obtained via the Venezuelan markets, deGroot added. GINA said that deGroot further explained, “When the Venezuelan market came to a sudden stop, millers were caught with stock on their hand. This was purchased at a high price, higher than the millers could make money on…Millers are caught with stock on hand that they have difficulty in exporting and they will not be able to export it and make a profit”. This, he said, has contributed to the difficulties some millers face in paying the farmers.
GINA said that it was also revealed that there is an equal number of millers who are owed moneys by farmers. de Groot said, “Some of them finance the farmers in order to go back into the crop”.
Head of the Essequibo Paddy Farmers Association, Naith Ram told Stabroek News on Thursday that the protest by farmers outside of the GRDB building happened spontaneously and that it was not organised by his association. He said “it goes to show the level of frustration.”
Ram said that right now the second harvest has commenced and farmers were receiving a grade for their paddy and within the next two weeks the price per bag would be determined. Ram was not optimistic that farmers would be given decent prices.
He said that he was disappointed in the new APNU+AFC government but also stated that millers needed to pay farmers and that to expect a bailout was unrealistic in a sustainable sector.
Ram echoed sentiments by other farmers when he noted that a number of millers had expanded their businesses. “They have invested heavily, some them buy two new John Deere tractors, a combine, front end loader, they are expanding at the expense of the farmers.”
He described millers’ attitudes as “brutish”, stating that when farmers inquire about payment some have been told by millers to “bring yuh tractor and trailer and fetch yuh paddy, go away with it”. He stated that farmers continue to be at the mercy of the millers.
He said that “I am not satisfied now and I am asking that there be a stabilisation fund…millers can have access to low interest rates they can borrow and pay the farmers.”
When questioned as to how an agriculture bank can be utilised this time around and not succumb to many of the issues that had forced the bank to close in the past such as gross mismanaging of funds, he said that mechanisms needed to be attached as well as good management.
Ram noted that along with the bank he will also be advocating that the new government look at the Factories Act and amend it to include compulsory fines for all millers who are delinquent in payments. He noted that the Act currently advocated for the issue to be taken to the courts which is a deterrent for farmers due to the money and time that would be required to pursue such an avenue.
Stabroek News was asked by one farmer if this publication had any insight into the government’s plans to either advocate on the side of farmers or intercede in the process. He sighed multiple times in speaking with the newspaper noting that he was at his wits end on the question of if the government would be willing to give the millers money to pay farmers.
“We doing this wuk and we ain’t getting pay, but what else I’m gonna do,” he told this newspaper.
GRDB is always seeking to get access into other markets and this is a continuous process, Housty stressed in the GINA release. These efforts must be formally set before being publicized, he said. Recent efforts in this area, have resulted in another contract being agreed to with Panama. Some 7,000 tonnes will be sent to the Central American country, GINA reported. (Pushpa Balgobin)
