A senior official of the Essequibo Coast business enterprise Imam Bacchus and Sons has told the Stabroek Business that the protracted dependence of Guyana’s rice industry on “Venezuela’s rice prices” may well have left the sector unfit to compete in the international marketplace.
Stressing that he was expressing his own views, in response to a question posed by this newspaper, Aadil Baksh, a Director of the company, said what was now required was a long-term solution for the ailments of the sector. “The only way to do that is for the government to allow the rice industry to operate at world market prices, so that whoever can be profitable at those prices can then create a resilient rice industry that can weather any storm,” Baksh said.
Essequibo rice farmers have been expressing concern over the likely fate of the industry in the ‘Cinderella county’ following last year’s sudden unravelling of what, for Guyana, was a lucrative PetroCaribe rice-for-oil deal.
Baksh said the economy of Essequibo is likely to be significantly affected by the need to look elsewhere for markets for the thousands of tonnes of rice no longer being imported by Venezuela. “The economy of Essequibo is largely dependent upon rice and it seems that there will be a shortfall in production this crop. Everyone is bracing for the impact. I think a lot of savings will be used to fill the gaps,” Baksh said.
While the Essequibo businessman believes there are policies government can embrace to improve the rice industry, he feels that much of the responsibility for the resuscitation the sector lies with the farmers. “I think that the responsibility to fix the industry lies chiefly with the farmers and millers. We need to find ways to become more efficient and professional. Many of us, including myself, need to find ways to re-adjust our expectations of what is realistic in the rice industry.”
Asserting that government should “implement policies to make the rice industry competitive internationally,” Baksh recommended the lowering of taxes on fuel in the light of falling global fuel prices in order to lessen the cost of
production and make the industry more competitive.
Meanwhile, and in the wake of reports of damage being done to water supply systems in rice-growing areas across the country, Baksh said government should move to better manage and police the existing infrastructure including drainage canals, access dams, kokers and pumps. “This will lower the cost of production as fewer rice fields will be abandoned or lost due to bad drainage and access,” Baksh said.
There has been advocacy in some quarters for a “bailout” package for rice farmers, but Baksh said he does not share this view. “I don’t think government should intervene directly to bail out any mill or farmer. Rice milling and farming are private businesses and everyone involved knows the risks and rewards. I don’t think it’s right to use public monies to bailout private businesses. I believe the best thing the government can do for the rice industry is to create a strong framework within which we can operate and find solutions for ourselves,” Baksh said.
