Seeking to allay fears, Minister of Agriculture Zulfikar Mustapha on Saturday told rice farmers in Black Bush Polder that the paddy price will remain at $65,000 per tonne based on an assurance given to him by millers after the government reduced the commission they pay to the Guyana Rice Development Board (GRDB) by US$2 and slashed the scanning fee by 50%.
Mustapha yesterday met rice farmers, who had been protesting the reduction of the paddy price for three days, at Yakusari and Lesbeholden, where they also highlighted the rise in costs for fertiliser, fuel and labour.
He stressed that after a three-hour-long meeting with the Guyana Rice Millers Association last week, he was assured that the price would remain at $65,000.
Rice farmers were initially receiving $70,000 per tonne from millers but were last week told that there would be a $5,000 reduction and further reductions in the following weeks. However, the Black Bush Polder rice farmers took to the streets in protest, saying that the new price of $65,000 would ruin their businesses.
Presently Region Two rice farmers are receiving up to $3500 per bag of paddy, while farmers in Region Six are receiving $4,226 per bag.
Mustapha yesterday explained that rice millers were paying a US$8 commission to the GRDB on every tonne of rice they exported. However, the government has decided to reduce the commission by US$2 and to reduce their scanning fee by 50%. “Just to ensure that farmers receive a better price”, he stressed. With these reductions, the millers are expected to be able to maintain payments of $65,000 per metric tonne of paddy.
According to Mustapha, last year when there was a scarcity of paddy, a rice miller in the region increased the price paid per tonne from $52,000 to $70,000, “and we were trying our utmost to get the price to remain there but I am saying there are certain things beyond our control. We have ensured that as a government we put maximum input into the industry.”
He then further stressed that the government has been making the necessary investments so that the farmers could “reap the benefits” as he pointed out that immediately after the PPP/C regained office the land rental fees were reduced.
He then added that when they regained government the yield was very low in Black Bush Polder but based on their investments and support to rice farmers “today this is the one of the highest [producing cultivations] that we have in the country.” He mentioned that this year there has been an increase in yield of almost 21% per acre.
“Why are doing this? We want to help the rice farmers,” he said.
Meanwhile, the farmers had also been calling for interventions to reduce the prices of fertiliser and fuel during their three-day-long protest.
However, yesterday Mustapha noted that the government would be meeting with the suppliers on Tuesday to negotiate a reduction in the cost of fertiliser for the next crop.
He stated, “The increase in fertilizer price we don’t have any control over it. It has skyrocketed because natural gas has increased and when it was about to come down back you had the war started in Ukraine and Russia push up back the price. We, as a government, we are putting so much input in this industry why wouldn’t we want to see farmers getting maximum benefit,” he stated.
He then lashed out at the former government, while claiming that under its tenure the price of paddy was at an all-time low.
Meanwhile, Mustapha yesterday also took the opportunity to point out that almost $1.9 billion in total is being spent on projects in the region, some of which have been completed.
In addition to the government looking into building a Hope-like canal in Black Bush Polder to assist with drainage and irrigation, two new pumps are also being placed at the location – one at Adventure (the entrance to Lesbeholden) and another further in the polders.
He pledged, “We will continue to support you all, we will always support not only rice farmers but all farmers and workers in this country. Let us look from where we came and where we are today and we will continue to support you.”
Meanwhile, after Mustapha spoke to the farmers at both locations they left without any objections. While some noted, that they are still somewhat concerned that the price of paddy will fall further, they said they would wait to see if the minister’s assurance could be counted on.
