Dear Editor,
Berbice rice farmers have a golden opportunity to capitalize on the Mexican market according to Mexico Ambassador Ivan Roberto Sierra-Medel. Guyana has been expanding its rice and paddy production and export levels with the assurance of both the PPP/C and APNU+AFC governments of securing good markets. However, recent changes in Venezuela have ended Guyana’s preferential access to the Venezuelan market with its good prices.
It is still too early to make a definitive forecast as to what the Mexicans will offer for a tonne of rice and paddy. Mexico is the second largest importer of rice following Japan. The Ambassador told the rice farmers that there is a big market for their rice and paddy if they can gain a foothold in it. This is an important breakthrough for the Berbice rice farmers and the rice industry as a whole as Guyana seeks to export rice and paddy to non-traditional markets.
Furthermore, the Mexican market should be outlined in the strategic plan, and this opportunity couldn’t come at a better time. I am sure that if the farmers meet the high standards and the requirements of the Mexican rice and paddy market, the quota will increase. The farmers and rice millers can negotiate for a waiver on CXT when they export a maximum of 20,000 metric tonnes of rice and paddy per year for the duration of the contracts. They can also ask for a waiver of the Merchant Marine Tax, which will help with the cost of the freight.
These concessions can be granted in good faith; the bottom line for the farmers to capture the paddy market is that they have to dry, clean and store it until there is a shipment. This will be difficult for them since they do not have the equipment and the facility to store the grain. They will have to work through the millers and a farmers group to get this done, although from my experience when this happens the ordinary rice farmers tend to lose. When there is an increase in the price for both commodities, the increase does not filter down to the farmers, and the millers and farmers group make most of the money.
For there to be a level playing field the Minister of Agriculture will have to put protection in place. What the farmers need is a situation where everyone will be adequately compensated for their hard work and their efforts in their drive to develop the industry. Kudos must be given to the Prime Minister Moses Nagamootoo and Mr Gobin Harbajan, who arranged for the Ambassador to meet with the Berbice rice farmers.
Let’s not waste this magnificent opportunity, but rather work assiduously to make our mark in their marketplace.
Yours faithfully,
Mohamed Khan
