Government on Tuesday voted against a nine-point opposition motion on rice which had called for the reopening of market talks with Venezuela but it has promised to look at concessions on fuel and other areas.
Debate on the motion had been adjourned from May 12 at which point it had already been clear that the government would vote against it. Even then, Minister of Agriculture, Noel Holder had committed to a review of the imposition of VAT on imported machinery and spares which was one of the matters raised in the motion.
Closing the debate on the motion on behalf of the government, Prime Minister, Moses Nagamootoo said they would look at the condition under which fuel would receive concession and would appeal to the bankers to render ‘soften’ terms of payments.
He said too that the government through the Guyana Rice Development Board (GRDB) is prepared to import fertilizer so that it would be available to farmers at the lowest possible price. He argued that they have already started to do that and would pursue aggressive marketing strategies to help the farmers. According to him, the government would ensure rice farmers get a better deal.
The motion in the name of former Commerce Minister, PPP/C MP Irfaan Ali had sought among other things:
(i) To resume negotiations with the Government of Venezuela with the intention of selling rice and paddy to that country;
(ii) To immediately remove all form of taxes and duties on fuel for the industry;
(iii) To remove all taxes and duties on inputs for the industry including machinery, equipment and spares;
(iv) To commence discussions with all the commercial banks lending to the industry to review terms and conditions of loans taking into account the low prices farmers are getting in order to ‘soften’ repayment conditions;
(v) To suspend payments of land leases and drainage and irrigation charges;
(vi) To lay supplementary provisions in the National Assembly to provide financial support to farmers in order to aid in the purchase of seed paddy and fertilizers;
(vii) To immediately implement minimum export prices for rice and paddy;
APNU+AFC parliamentarian, Hemraj Rajkumar acknowledged that the rice industry is in difficulty but said it was inherited from the previous administration. He said that the proposed measures in the motion are long-term solutions. He noted that one of the main problems facing the farmers is not receiving payment from the millers in a timely manner resulting in them borrowing money.
The solution, he said, is to have a commitment from the millers to pay within 42 days or face actions. He noted that actions are not taken because farmers are afraid that they would be victimized by the millers. He urged farmers to produce better paddy so they can have better prices. According to him, government cannot force Venezuela to buy the rice but it had sought other markets and gotten them.
Recent figures provided by the Guyana Rice Development Board and published by Stabroek News showed that markets in Europe have made up for the loss of the Venezuela arrangement.
Economic hardship
In her arguments, PPP/C’s Chief Whip, Gail Teixeira said that both the rice farmers and the millers are facing economic hardship and are not able to meet their obligations to the commercial banks. She that the fundamental role of the government is to save the industry and that it is inconceivable that any government would fold its hands and watch and do nothing to save and assist the sector, the farmers and the community.
She accused the government of having a hands off approach and a “don’t care a damn attitude” at the time of the 50th anniversary celebrations and said the motion offers an opportunity to present a different face.
Teixeira argued that the nine-point plan in the motion can help rice farmers and appealed to members of the opposition to vote for the motion with their conscious for the interest of all Guyanese.
In closing the motion by the opposition, MP Ali said he was seeking “to once again re-establish the necessity for us to act in a nationalist way, for us to act in a non-discriminatory way… in a fair and balanced way and that way is to support the motion that is before us for the rice industry.”
He said that the task of building Guyana must not be subject to speech, but they must show the people of Guyana that they are bold enough to make bold decision that would improve their lives the next 50 years from now. Ali said if the Minister of Agriculture would like them to establish a mechanism by which they worked and implemented the nine points, he should support the motion. He said the motion belonged to everyone in the house and they must act in the interest of the rice farmers if they are serious about the issue.
He noted that everyone who spoke on the motion said that there are two issues facing rice: marketing and the price offered and the other is dealing with the financing and subsidizing of the industry.
The Minister of Finance, Winston Jordan, he said, has not found the time to give it a little attention even though all nine of the recommendation have financial implications and also great rewards.
He mentioned too that Member of Parliament, Charrandas Persaud who is representing Region 6, where rice plays an important role and the representative of Region 5, Jennifer Wade, where rice is the more dominant aspect of the economy, did not have the time to speak on the motion.
Wade then shouted from the other end of the House that “when I was speaking before you all did not listen.”
According to Ali, the government of the day has an equal responsibility to the rice farmers as it has to any other member of the society.
The prime minister argued that the Minister of Agriculture, Holder had said that 40 countries were now buying rice from Guyana and that the prices are higher than the world market prices.
He said they must protect the market by ensuring that the highest quality rice is exported. Government has doubled the export of rice to Jamaica in 2015. The price for white rice was over $40,000 and is expected to be doubled in 2016.
As he was speaking, there was loud heckling from the opposition to “give the farmers the $9,000 that you promised them.”
