Dear Editor,
Harvesting of the first rice crop for 2016, will commence soon in Region Two, where farmers will be making full use of the sunny weather. Farmers are expected to harvest an average of 40 bags per acre without much difficulty; overall a bumper crop will result. It is a relatively small crop considering that only about 25,000 acres out of the 35,500 acres were sown due to the lack of irrigation water and the continuing dry weather.
With a lower projected yield from such a reduced crop, the signs are pointing in the direction of increased competition for farmers’ paddy and a resultant increase in price, which may be good for the farmers. I think it was a wise decision for Guyana and Suriname rice millers to join forces considering the critical nature of the current situation. It will be necessary to lobby for increased access to the Colombia market.
This could be expedited and supported by monitoring how paddy stocks are released into the market, thereby empowering lobbyists with crucial information for decision-making. The need for constructive dialogue between the Guyana Rice Exporters and Millers Association (GREMA) and the Suriname Rice Millers Association at this time cannot be over-emphasized. Over the past year, there has been a general decline in the sale of rice on the international market for both Guyana and Suriname.
This trend, which has been non-uniform, has had more consequences for Guyana and Suriname than other rice-producing countries. In the last few years they have faced a serious threat to their earning position as other countries began offering more competitive prices. If rice from outside sources enters the Caribbean and Colombia markets, regional producers will have grave difficulties in competing. Guyana and Suriname producers will have to pay greater attention to cost of production and efficiency. We hear over and over that the world is becoming more interdependent.
Much talk is going on about the global rice trade. Asian countries are forming transnational corporations and they do not allow differences of race, nationality or religion to affect their profits. They will further add to the pressure on the low prices. For the third time since 1995, drought has reduced rice crops in Guyana and Suriname. It is still too early to make a definitive forecast of the 2016 production of Guyana’s paddy and rice. International rice prices from most origins strengthened during the month of March.
Yours faithfully,
Mohamed Khan
