Continued efforts to help farmers deal with high production cost

Georgetown, GINA, January 18, 2007.

Government’s interest in advancing the rice industry is being further displayed with more interventions to help farmers deal with the high cost of production. Efforts are underway to make fertilizers available at cheaper costs.
Through a collaborative venture by the Ministry of Agriculture and the Rice Producers’ Association (RPA), a shipment of fertilisers has been arranged and is due to arrive in Guyana by January 21.
This was announced during a farmers’ meeting at Cane Grove, Mahaica, on January 17 by Minister of Agriculture Robert Persaud, who pointed out the positive impact of the intervention since it will allow farmers to access cheaper fertilizers.
            The initiative is being undertaken by the RPA and will enable farmers to purchase fertilizers at a cost of approximately $5, 200 or $5, 300 per bag at the wharf once there are no changes to the importing arrangements.
Other suppliers in the country are currently selling fertilisers at approximately $6,000 per bag while a shipment being sourced out of Trinidad and Tobago will see the item being sold at $6, 200 per bag.
            The RPA was able to secure a loan from the financial facility set up under the Rice Competitiveness Project to undertake the initiative that is intended to provide assistance to farmers.
RPA’s General Secretary Dharamkumar Seeraj said the association will continue to play a major role in supplying other inputs to the industry and at present focus is being placed on building capacity to do so since it will require proper business management.
Previous interventions by Government to help farmers deal with the high cost of production included removal of Value-Added Tax (VAT) from spare parts for tractors and combines used in the rice industry and reduction of the Excise Tax from fuel. Additionally, fertilisers are among the agricultural inputs that do not attract VAT.
Through the financial facility, farmers can also access loans at low interest rates for investment in their activities while major focus was placed on strengthening the drainage and irrigation system to support rice production.
At present, there is a price increase for rice, but according to Minister Persaud, reports presented to him do not indicate any shortage of supplies. Arrangements are being made to have discussions with millers as the first step of implementing measures to deal with the issue.
He explained that the price increases are only being experienced in some areas. A survey is currently being done to determine the price for rice in both wholesale and retail quantities at the various locations after which the information will be made public. This will allow wholesalers and consumers to source rice from areas where better prices are offered.
Farmers at Cane Grove reported to the Minister that it is unusual that rice is being sold at a cost of about $6,000 per bag when their paddy was sold to millers at just $2,200 per bag.
Preparations are currently being made for the first crop in 2008 which is expected to be bigger than previous years while more investments continue to be made to ensure that the industry overcomes its current challenges and further develop.
Through the Competitiveness Project, approximately $3.6B is being invested to improve water management in Region Two, boost research and extension services and provide technical assistance in addition to the financial facility.
In 2006, the Rice Factories Act was amended to ensure a level playing field and fairness in the system especially with regard to payments to rice farmers by millers. Various regulations were implemented to ensure more efficiency in operations.
It is estimated that there are approximately 10,000 farming families that depend on rice for their livelihood. Guyana also has 105 privately-owned rice mills. In addition to farming families, workers in the rice mills, exporters, input suppliers and others also depend either directly or indirectly on the rice industry, thus approximately 100,000 persons (14% of the entire population) rely on this vital industry.

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