The islands of Leguan and Wakenaam in Region Three (Essequibo Island-West Demerara) are at a breaking point with no possible solution or intervention being pursued to tackle their rice woes.
This is according to People’s Progressive Party Civic (PPP/C) Member of Parliament (MP) Irfaan Ali.
Ali said close to 500 families in these two islands have direct investment in rice cultivation and Government needed to address the situation, which has been taking a toll on the economy.
“Using an average household size of four, more than 2000 persons are directly dependent on rice for their survival,” Ali told this publication on Tuesday. According to Ali, an average family in Wakenaam plants about seven acres of rice while a family in Leguan plants approximately nine acres.
“Production costs in these two islands average out at around $90,000 per acre. The total investment an average family make every crop in Leguan is about $810,000 while in Wakenaam it is about $630,000. Put together these 500 families invest more than $720 million every crop in these two islands,” Ali posited.
With the halting of rice shipments to neighbouring Venezuela – Guyana’s largest supply market – the economy is going downhill and farmers across the country have begun tugging at Government for answers.
Government has pointedly noted that it is not in a position to assist farmers, particularly because the industry rests solely within the Private Sector.
Speaking particularly to the situation in Leguan, Ali said that the worrying thing is that Government has been silent regarding this issue.
“When dealing with the livelihood of close to 90 per cent of the population on these two islands, it becomes public business. Immediately, at a minimum, the Government could have helped out the farmers with the provision of free transportation or subsidised charges to transport their paddy especially from Wakenaam.
With fuel prices down and electricity charges relatively at the same rate, give the millers a subsidy rebate that they must pass on to the farmers”, the former Minister posited.
His recommendation was for Government to immediately launch a fund that would provide credit at low rates to allow farmers to get back to the next crop.
“With the present signals it is clear that the private commercial bank with be cautious or even negative in lending to this industry. If Government is not desirous of intervening and helping the farmers, then tell the people of these islands what their alternatives are. We in the [People’s Progressive Party/Civic] PPP/C believe in keeping this industry whie we supplement the income of the rice farmers with infrastructure investments that would have created new economic opportunity, an example is the chip factory we pursued in these two islands”.
Ali said any help in this regard would be accepted by the farmers, who are all in a state of desperation. “Can the farmers expect any help in the form of seed paddy and fertiliser? Any subsidy at the household level in electricity charges? Similar to what obtains in Region 10. Can the farmers expect the establishment of a revolving fund to assist them? Can these small farmers with an average of seven and nine acres have access to the low interest small business fund? Would there be any formal Government intervention with the commercial banks on behalf of the farmers? These are not my questions, they are what the farmers are asking and answers must be provided and action must be taken as the farmers and people of these islands are most deserving of,” the former Minister lamented.
He said considering the figures, farmers are asked to take this crop which is $1700 per bag in Leguan – the average loss per family would be approximately $381,600 while the situation will worsen in Wakenaam with farmers having to spend $400 out of the $1800 they are receiving to transport their paddy to Essequibo.
Their final price, he reckoned, would be $1400 with an average net loss $476,000 per family.
“The total loss these 500 families would face at the end of this crop is approximately $210 million which is approximately 30 per cent the size of the industry in these two island”, Ali noted.
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