UPDATE ON THE RICE INDUSTRY 2007/2008
BY HON. ROBERT M. PERSAUD, MBA, M.P., MINISTER OF AGRICULTURE
4 th December, 2007
MEASURES TO BOOST RICE SECTOR
EU Financial support to the sector:
The rice sector continues to benefit from the EU Grant facility to support the rice competitiveness in the following areas:
Water Management Rehabilitation:
A total of G $409 million will be spent of the following:
- Complete rehabilitation and replacement of the four pumps at Dawa is schedule to be complete within the next three months.
- Procurement of 2 “long reach” excavators.
- A 15 KVA generator
- Replacement of the double-door sluices at Westbury and Golden Fleece on the Essequibo Cost.
Financial Facility:
A 6.5 million Euros financial facility was established at GBTI to provide low interest commercial credit to operators of the rice sector. The RPA has secured a
credit loan of US $ 2.9 Million to procure fertilizer for the industry.
Technical Assistance
Support to the sector in the area of Institutional Strengthening & Capacity Building , Training to Millers, business advice on investment and
credit, technical support and the development of a Draft Agriculture Sector Policy.
Research and Extension Grant
A one million Euros matching grant has been provided to GRDB for the execution of activities in seed production and value added rice testing.
This program is progressing and is expected to be completed on schedule.
Other Interventions
Reduction of c-tax/excise on fuel – on a regular basis, the Government has reduced the c-tax (now excise tax) on diesel to off-set rising acquisition costs of fuel.
Value Added Tax was exempted from fertilizers, all pesticides, harrows, ploughs, and other machinery/spare parts used in rice cultivation.
Drainage & Irrigation
The Government in its continued effort to adequately address the issues of drainage and irrigation has competed the following in 2007:
· $950 million expended to procure 19 excavators though the NDIA
· Approximately $2 billion on the NDIA budget.
Legislation for 2007:
- Rice Factories (Amendment) Act 2007 was passed to ensure protection to rice farmers.
- Guyana Rice Development Board (Padi and Rice Grading) Regulation of 2007 was signed.
This amendment and deals with the following:
- Weighing of paddy
- The weight at which padi should be bought.
- The determination of dockage
- The grading of paddy
- The procedure to determine moisture content
- The payment to farmers.
- The conditions for the issuing of licence to manufacture rice.
- Offences and penalties.
GRDB Reorganisation
In addition to these interventions, a number of other initiatives have been pursued under the programme to improve the delivery of services required to
improve efficiency and competitiveness.
This includes a Ministerial report on the proposed re-organisation of the GRDB to meet the changes in the global rice sector. As part of the re-organisation
process, the GRDB will be required to invest attention in areas of institutional development, technical services, operational efficiencies, transparency of action
hrough communication planning, client-driven modus operandi, and so on.
A submission to Cabinet is being submitted for endorsement which will facilitate implementation of actions to meet the proposed changes required at GRDB.
These changes will include strategic, policy, managerial and operational.
Already, a number of policy shifts have been put in place including changes to the export licensing process, paddy trade regulations, mill licensing process, and so on.
Also, efforts are being placed on the visibility of the GRDB and its responsiveness to the needs of the sector though improved communication and harmonization
of the services provided including research and extension and seed production. To this end, a comprehensive review of the R&E services is currently being finalized
and recommended immediate, short, medium and longer term actions delineated.
PRODUCTION AND EXPORTS – 2007
2007 can be considered a year of mixed opportunity for the rice sector, with exports projected to be the highest in the last ten years.
Exports: Rice Exports for 2007 has surpassed that of the previous year. The comparative statistics for the two years are as follows:
· 2007- exports as of the end of November is 247,111 mt valued at US $ 68,321,328.11
· 2006- November comparison is 183,705 mt valued at US $ 49,090,457.
This showed an increase of 35 % by volume and 39% by value.
Our major markets continue to be the EU and CARICOM with the major importing countries being Holland, Portugal and Jamaica. Exports data as at
November 2007 revealed the following;
- Holland imported 63,847 mt,
- Portugal imported 50,330 mt.
- Jamaica imported 49,007 mt.
These amounts are more than what were exported for the entire previous year (2006).
Production: Despite the unseasonal weather, rice production in 2007 was close to the anticipated level.
The Table below illustrates the production data.
Table 1: Rice production for 2007 – First and Second crops.
|
Actual (MT) |
1 st Crop |
168,902 |
2 nd Crop |
128,260 |
TOTAL |
297,162 |
Region 5 & 6, due to irregular weather patterns experienced slippages in production target. 52% of targeted acreage was cultivated in Reg. 5 and 71% in Reg. 6.
The prices for the 2007 at the farm and mill level has increase in the last year and with the prediction f this trend the industry will be benefiting for a more favourable marketing conditions.
Seed Production: GRDB reviewing of operations at Burma Rice Research Station.
Due to the inability of the Burma Rice Research Station to make available to farmers the expected quantity and quality of seed during the spring crop of 2007, I have
advise management of GRDB to take the necessary action both, technical and disciplinary to ensure that this does no re-occur.
Table 2: Prices Farmers received in 2006 as compared to prices received in 2007.
Prices in 2006 |
Prices in 2007 |
Padi Prices ranged between GY$1500.00 – 1600.00/bag |
Padi Prices Ranged from GY$2700.00 – 2800.00/bag
Towards the end of the 2 nd Crop, Avg. Price of GY$2200.00 was received per bag. |
Cargo Rice (Export) – US$265.00/Ton (FOB)
|
Starting of Year: US$285.00/Ton (FoB)
Ending of the Year: US$325.00/Ton (FoB) |
2008 PROJECTED PRODUCTION
With favourable market conditions both locally and internationally rice production for 2008 is estimated to be the second highest since 2000. Rice projection
is estimated to be 341,662 Mt and exports 234,600 Mt at a value of US $ 67,279,500.
Land preparation and sowing has already commenced for the first crop of 2008, with approximately 70% of the projected acreage already being prepared.
Table 2 : 2008 RICE PRODUCTION PROJECTION |
|
FIRST CROP |
SECOND CROP |
TOTAL-US |
SOWED (ha.) |
57,500 |
59,200 |
116,700 |
HARVESTED (ha.) |
57,500 |
59,200 |
116,700 |
YIELD (bags/ha.) |
71 |
71 |
71 |
PADDY PROD. (mt.) |
259,324 |
266,991 |
526,315 |
RICE PROD. (mt.) |
168,118 |
173,544 |
341,662 |
EXPORTS(mt.) |
118,700 |
115,900 |
234,600 |
EXPORTS VALUE (US$) |
34,041,248 |
33,238,252 |
67,279,500 |
SOME PLANS FOR 2008
- Varietals Development – Through Burma Research Station will continue. Breeding of higher yielding varieties to enhance competition on international market.
- Quality Seed Production – to enhance quality & quantity of seed for farmers
- Assistance to Farmers – Technical/Entrepreneurial advice for farmers
- Farmers Training – Farmer’s Field School to be continued and expand countrywide.
- Working with RPA to reduce fertilizer costs.
- Quality Control Section – to continue monitoring Rice Factories ensuring compliance with the Rice Factories Act and Regulations.
- Marketing – Widen market intelligence to expand our new and emerging markets ( Panama, African Coast)
- Continue working with CARICOM Secretariat, MOFTTIC and MOA to ensure extra regional rice imports attract the relevant duties.
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