– urges major tax wavers for farmers
The People’s Progressive Party / Civic (PPP/C) opposition wants the government of Guyana to make some urgent and drastic interventions in the rice industry.The call is to be made on the floor of the National Assembly at this week’s sitting.The PPP/C has tabled a motion that stands in the name of Former Minister, Irfaan Ali.Ali asked specifically for the government “to withdraw its pronouncement that the rice industry’s crisis ‘is a private matter’ and give support to the industry, especially the farmers.”
Ali’s Motion, titled “The State of the rice industry in Guyana” has five whereas clauses and one resolve. However, his resolve calls on the government to adopt about eight measures.In his whereas clauses, Ali noted that last October, Dharamkumar Seeraj, the General Secretary of the Rice Producers Association and a Member of Parliament, wrote Minister of Agriculture, Noel Holder conveying a grave concern of the PPP/C in respect to the state of the Rice Industry in Guyana.
PPP/C MP, Irfaan Ali
Ali said that in that letter, Seeraj pointed out that rice farmers were promised a 100 percent increase in the price for which paddy was sold for the first crop of 2015, by several leaders of the APNU+AFC during the campaign leading up to the National and Regional Elections held on 11th May, 2015. However, “in breach of that promise,” for the second crop for 2015, farmers received 35 percent to sixty percent of the price obtained for their paddy in the first crop of 2015.”
Ali said that as a consequence, both rice farmers and rice millers are facing tremendous financial and economic hardships and many of them are unable to meet their obligations under loan contracts with commercial banks for which their homes and other assets have been lodged as collateral by way of mortgages. He said that many of these properties are now in jeopardy of being the subject of foreclosures and sales.
The former Minister added that in an attempt to bring some measure of relief, a number of measures were proposed to Minister Holder for his implementation. However, none of these proposed measures have been implemented “and the situation in the rice industry has since gotten progressively worse.”
Should the Motion gain favor with the rest of the House, Ali wants the government to, “with every convenient speed,” resume negotiations with Venezuela with the intention of selling rice and paddy to that country.
The Former Minister indicated that the PPP/C wants government to immediately remove all forms of taxes and duties on fuel for the industry as well as remove all taxes and duties on inputs for the industry, including machinery, equipment and spares.
The Motion seeks to have the government commence discussions with all the commercial banks lending to the industry to review terms and conditions of loans taking into account the low prices farmers are getting in order to ‘soften’ repayment conditions.
PPP/C also wants government to suspend payments of land leases and drainage and irrigation charges; lay supplementary provisions in the National Assembly to provide financial support to farmers in order to aid in the purchase of seed paddy and fertilizers and immediately implement minimum export prices for rice and paddy.
The Motion also called on government to implement an aggressive marketing strategy in order to enhance current prices and secure new lucrative markets. (Abena Rockcliffe- Campbell)
