Facing myriad problems, rice farmers from across the country yesterday told Agriculture Minister Zulfikar Mustapha that spare parts dealers are ripping them off and they called for a standard paddy price.
In recent weeks farmers from different parts of the country have told Stabroek News about the major problems they are facing in cultivating including low paddy prices and extreme weather.
Yesterday, farmers from Regions Two, Three, Five, and Six met with Mustapha to discuss some of the issues they faced in the industry.
A press release from the Ministry of Agriculture said that while noting that most of their issues are a result of unfavourable weather and external economic factors, the farmers called on the government to intervene in what they consider price gouging by suppliers of spare parts.
The farmers said that while the government has put systems in place, they are still paying high prices and, in some cases, VAT on spare parts.
“On the removal of VAT on spare parts, the government really do a good for us but the problem is we not feeling the effect. Everything raising. While these things are in place by the government the prices still high and growing every day. The issue is now between the government and the dealers because we know for a fact that the VAT is supposed to be deducted but it’s like it’s not. I bought a starter yesterday for $46,000. It used to be for $25,000. Look at the markup. Some of them still charging VAT. I have a receipt to prove it,” a farmer charged, according to the release.
Furthermore, the farmers told the minister that the price for paddy should be standard in every region since all farmers are faced with the same issues.
The release said that Mustapha explained that the government, since taking office has implemented a number of measures to aid farmers, the most recent being the $1 billion fertilizer assistance programme that was completed last year.
He said that although farmers are requesting an across-the-board price increase for paddy from millers, the government cannot institute this because transportation cost plays a significant role in the price for paddy in certain areas.
“We will continue to engage the millers on prices but I cannot promise an across-the-board price for paddy. For instance, in Region Two, the price to transport will be more than in Region Five so in order for millers to earn they take those factors into consideration. You know for a fact last year we were able to negotiate with millers from Region Two for better prices for farmers and now you are getting up to $4,000 per bag,” Mustapha said.
As it relates to prices for spare parts, Mustapha said that the government has made its policy clear and that VAT is no longer applicable to inputs and equipment for the agriculture sector and assured the farmers that he will engage the Guyana Revenue Authority on this issue.
After taking office in 2020, President Irfaan Ali had announced the removal of VAT and duties on machinery and equipment to allow for the recapitalization of key sectors which includes mining, forestry, agriculture, and manufacturing.
The minister also told the farmers that since taking office, the government has spared no effort to ensure they benefit from assistance to cushion their hardships.
“Most of the issues faced in the sector, we have to work together to resolve them. The weather hasn’t been favourable but we are working to strengthen our infrastructure. We are building new pump stations to assist with drainage. We are building new farm-to-market roads, and rehabilitating dams so that you can access your fields. We’ve been working to enhance the drying facilities that we have across the country. We rehabilitated the one at Black Bush Polder so that will be in place for the next crop. The one at MMA; we’ll increase its production capacity from 2,000 bags to 50,000 bags. We’re also working to rehabilitate the Leguan facility”, Mustapha said.
He added that the government is also in discussions to source cheaper fertilizers and remains in contact with Panamanian officials to secure payments owed to millers for rice.
