Why is the Rice Factories Amendment Act not being enforced?

STABROEK NEWS, DECEMBER 31 --- The Guyana Rice Development Board (GRDB) and the Ministry of Agriculture must tell the rice farmers why the Rice Factories Amendment Act which was passed in the National Assembly to protect them from being exploited by some unscrupulous millers making late payment without interest. The Ministry of Agriculture cannot fool the farmers all the time. We are a healthy, intelligent and literate people who are possessed of a wide range of skills and capable of learning new ones.

I think the Minister should tell us how he would be able to recover the money loaned to the millers and how he has arrived at the outstanding payments for rice farmers since GRBD and the Ministry of Agriculture does not keep records of farmers who have sold paddy to millers, together with the various grades and prices.

At one time I knew that when relief was given to farmers who lost their crops because of the El Nino effect and the lack of irrigation water, the acreage was inflated with some ghost farmers on the payroll who received millions of dollars.

I also think that the GRDB should explain to the taxpayers and the farmers why the Rice Factories Act of 1992 was never used to penalize defaulting millers for the non-payment of farmers’ paddy, moisture, short weight and dockage. I observed that only one miller was targeted under the Rice Factories Act .

The act clearly states that the miller’s licence can be seized or can be fined or given a jail term for breach of the Act. I am sure that the millers, GRBD and the Ministry of Agriculture are aware of the clauses and who signed the agreement. There are many instances where farmers and producers are exploited to the point of extinction.

The late Dr Cheddi Jagan saw that landlords, money lenders and unscrupulous millers were the dominant components of the rice industry, when he assumed office in 1992. Today, although the bill is in force, farmers are owed enormous sums of money by millers and are being treated like beggars. During the period 2006-14, there has been no change to protect the rice industry, particular the rice farmers who are toiling under harsh and back-breaking conditions of production.

The millers continued to take advantage of the farmers and the future therefore seems dim for them. The government has not introduced subsidies on agricultural items although production has skyrocketed. In 2001, the Governments of Guyana and Brazil conducted bilateral trade negotiations with a view to enhancing trade in rice between the two countries. This was a golden opportunity for Guyana’s rice; it was granted a waiver of 15% CXT to export a maximum of 10,000 metric tons of rice per year for the duration of the agreement.

It was also granted a waiver of the merchant marine tax, which was 25% of the value of the freight. It is important to note that these concessions were granted in good faith. Guyana, instead chose to sell its rice and paddy to Venezuela under the PetroCaribe deal without these concessions which would have brought more benefit to the farmers and country as a whole. Over the years, there has been a general decline in rice and paddy prices on the Venezuela market.

Presently, Guyana is competing with Asian countries on the international market for parboiled and white rice market which will add further pressure on the low prices it received. It is time for Guyana to begin to examine the avenue to becoming more competitive. The production of fragrant rice is definitely one of the available avenues.

[By Mohamed Khan]