– monies were paid to rice farmers from Region 3

The Rice Producers Association (RPA) General Secretary Dharamkumar Seeraj has denied an allegation of obtaining a loan of $100 million from the Guyana Rice Development Board (GRDB), which is still to be repaid.

Guyana Times understands that a group of farmers in Region Three (Essequibo Islands-West Demerara) formed a Co-op called “Quality Rice Co-op” and the RPA supported these rice farmers to get involved in milling and exporting.

The primary target at that time was the Venezuelan market and as such, these co-op members entered into an agreement with a mill in Region Three to contract an individual to process the rice and paddy for exporting purposes.

Unfortunately, after the processes began and upon the final stages of exporting the paddy to Venezuela, it was discovered that the paddy was not processed properly by the mill as per contract.

Seeraj explained to this newspaper that as a result these farmers were unable to export the rice to Venezuela and were not getting paid.

The RPA then made representations to the Agriculture Ministry and the GRDB for a resolution into the matter.

“What happened is that the Government at that time was supportive and sympathetic to the plight of the farmers and they agreed to loan some amount of money to pay the farmers to the Co-op. By then the Co-op had taken the mill to court so they said it was best that they pass the money through the RPA. Then the RPA would made the payments to the farmers and that is what was done so it is only that the RPA facilitated the payments to the farmers,” he said.

It was further explained that many of these farmers were still owed since it was not a 100 per cent payment.

Guyana Times was also told that this Co-op was formed sometime in 2013 and this loan of $100 million took place in 2014.
“The RPA facilitated the payment to the farmers targeted with the intention that the paddy and rice when sold that the money would have gone back to the GRDB…There is no money and the matter is still in court. I think the Co-op is accusing the individual of stealing the paddy and all kinds of things so that is why it is still in court,” he added. (kristenm@guyanatimesgy.com)