Government intervenes to address rice price increase

Georgetown, GINA, January 24, 2007.

Arrangements are being put in place through the Ministry of Agriculture with the support of millers to set up at least two depots in Georgetown for rice to be made available on the local market at affordable prices.
            This is in keeping with Government’s continued quest to help consumers deal with the price increase for this commodity on the local market, particularly since there is an adequate supply.
This intervention was discussed today by Minister of Agriculture Robert Persaud and millers at the Ministry’s Boardroom, Vlissengen Road and Regent Street. General Manager of the Guyana Rice Development Board (GRDB) Jagnarine Singh and General Secretary of the Rice Producers Association (RPA) Dharamkumar Seeraj were present at the meeting.
The initiative will be co-ordinated by GRDB and the Guyana Marketing Corporation (GMC) and will require millers to make rice available in agreed quantities for local consumption. The commodity will be retailed at the Agriculture Ministry’s Brickdam Compound and at GRDB’s Head Office, Kingston. It is expected that this arrangement will commence on Monday, January 28.
This intervention, Minister Persaud said, is aimed at demonstrating to consumers that there is an adequate supply of rice and to address any interference which may exist along the process from field to market. The initiative will be implemented initially in Georgetown, but there are plans to expand it to Berbice, Essequibo and Linden.

Minister Persaud meets rice millers and exporters

He added that this will be done to help consumers while at the same time ensuring that millers and exporters meet their export demand. The Ministry will be working with the companies in this regard.
Minister Persaud noted that millers’ support was sought to undertake the activity since they have an obligation to supply the needs of the local market. Millers expressed their willingness to co-operate and sought clarification on the arrangements to facilitate the process and the quantities to be made available by each miller.
It is expected that approximately 8, 000 to 9, 000 tonnes of rice will be available on the local market within the next month. The average local monthly consumption is about 4, 500 to 5, 000 tonnes.
Additionally, the projected target for the first crop of this year is 129, 000 tonnes which is expected to be available by February/March/April. This will further boost the supply level, Minister Persaud said.
Over recent months, there has been an increased global demand for rice and importers of Guyana’s rice have been increasing their supplies while new market opportunities have been indicated.
Government has assisted farmers to increase production and has intervened to help them deal with the high cost of input.  The reduction of the C-Tax/Excise Tax on fuel on a regular basis and exemption of the Value Added Tax (VAT) from fertilizers, pesticides, harrows, ploughs, and other machinery and spare parts used in rice cultivation have been significant interventions.

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