Dear Editor, The Venezuelan Rice Deal has been an important one for Guyana. The 2015 arrangements called for Guyana to export approximately 200,000 tons of rice and paddy to Caracas, worth about $US120M. For 2015, this would have been about 30% of the total production in 2015. In 2010, the export to Venezuela accounted for almost 70% of the total production in Guyana. Because we have increased production since 2010 and because the export market increased dramatically, the export to Venezuela gradually accounted for less of the production and in 2015 would have been only about 30%. Yet the market remained one of the most important markets in the Guyana Rice Industry. It is a market that has always needed special nurturing. The Jagdeo/Chavez Initiative essentially used the loan from the Petro Caribe arrangement to pay for the rice Venezuela imported from Guyana. This meant that Guyana kept a smaller portion of the Petro Caribe Funds than most of the other countries engaged in Petro Caribe. This was an important part of the negotiation with the Venezuelans. Guyana had to purchase enough oil from Venezuela to ensure that there was enough money in the Petro Caribe Account to pay for paddy and rice exported to Venezuela. I negotiated deals for 2012, 2013, 2014 and 2015. During those times, Guyana and Venezuela had some tense moments over the border issue. The Guyana Government managed these tense moments and throughout it all, Guyana and Venezuela maintained the rice arrangement, for the mutual benefits of both countries, our farmers and our people. Venezuela has always had a rice industry of its own. By 2010, the Venezuelan Rice Industry had been experiencing great difficulties. When Venezuela started to buy rice from various countries, including Guyana, through a Petro Caribe arrangement, Venezuela had intimated that its intention is to resuscitate its own rice industry. Each year during negotiation, we discussed Venezuela’s rice industry’s status. It is the reason why Guyana never sought to increase how much we sold to Venezuela. We ensured that we diversified the market so that Guyana was not dependent on any single market. From less than 300,000 tons export in 2011, we increased the export market to more than 500,000 by the end of 2014. From a handful of countries, we were already exporting to more than 33 countries around the world. When we signed the 2015 Rice Contract for approximately $US120M and about 200,000 tons of rice and paddy, we also agreed to meet again later in the year to discuss our future arrangements, given that the oil price had reduced and that the Petro Caribe Account might not be sufficient to pay for the amount of rice and paddy Venezuela was importing from Guyana. At no time did we agree that the 2015 Rice Deal was the last deal between our countries. It is true that each year, we discuss the possibility that Venezuela might not need to import as much paddy and rice as they were doing at the time because the Venezuelan Rice Industry might pick up again. As a backdrop to each negotiation, this assertion that Venezuelan Rice was going to be successful again was always raised. In 2012 and each year after, Venezuela approached the discussion as if they were not going to need to import as much paddy and rice as they were doing at the time. I suspect that it was not different again this time. Guyana’s position with Venezuela throughout those discussions was always based on a very sensitive approach – we were supportive of Venezuela’s efforts to resuscitate its own rice industry and we fully appreciate that when that resuscitation occurred that Venezuela would not be able to continue buying Guyana’s rice and paddy. We reiterated those sentiments during the 2015 discussions earlier in the year before we started the 2015 contract. The inclusion by Venezuela of their intention to resuscitate their own rice industry and Guyana’s understanding that when that time comes the Venezuelan market for Guyana’s rice and paddy would shrink were always part of the preliminary discussions in finalising the market. The present situation with the collapse of the Rice Deal has to do with the present tense situation between the countries. I hope that the markets I was developing and that the GRDB and the rice millers were working on would be further developed. Guyana can sell more than 700,000 tons if we allow the industry to continue the work it did before the new government took over. The new government had promised during the elections that they had markets that would pay farmers more than $9,000 per bag of paddy. They had boasted that some of their people had in fact developed the Venezuelan market and had markets all over the world, but that the PPP/C Government was suffocating them from being able to export Guyana’s rice and paddy. Well, some rice farmers did listen to them. Now is APNU+AFC’s chance to put in place their markets, their price structures and to show the farmers that they were not lying to them during the election campaign. This is not the time for them to use Venezuela as an excuse. This is not the time for them to cast blame on others. The industry needs good stewardship in order to continue to grow. That stewardship requires a strong Government support – a support that the PPP/C gave fully.

Dr. Leslie Ramsammy