Rice industry heading toward ‘bright days’
-continued investment by Government

Georgetown, GINA, March 18, 2008.

Rice farmers, millers, processors and exporters have been assured of Government’s continued support and investments to help them utilise the opportunities which are steadily becoming available in the industry, as the global demand for the staple increases.
            During a farmers’ meeting with Minister of Agriculture Robert Persaud at the Crabwood Creek Primary School on March 15, 2008, the gathering was told that the price for rice on the international market is projected to increase further, allowing all stakeholders to enjoy the benefits.
            However, farmers have been advised that while taking advantage of the opportunities, they must not repeat the mistakes made in the 1990s to focus merely on rice cultivation and neglect producing other crops.
There has been growing interest in rice cultivation over recent years with more lands being put under cultivation while farmers, who had given up their activities following the 1990 situation, are returning to the lands. Apart from the bright market prospects, this is a result of improved drainage and irrigation (D&I) and basic support services, areas in which Government has invested significantly.
Two of the main issues challenging the industry in recent years have been unusual weather pattern and high cost of input. Having recognised the impact of the climate change phenomenon on the industry, Government continues to invest heavily in D&I while exploring other measures such as the development of new and improved varieties of rice that can withstand the current climatic conditions. 
As part of efforts to help farmers deal with the high cost of input, the Value Added Tax (VAT) was removed from fertilizers while additional arrangements are being pursued to make supplies available to farmers at affordable rates. A special concession was granted whereby VAT is exempted from spare parts for tractors and combine used in rice cultivation.
The development of advanced seed paddy plant at areas such as Anna Regina, Crane and Leguan are among other activities undertaken over the years to support the rice industry’s modernisation while another such facility is being set up at Black Bush Polder in Region Six.
More than $3B is currently being spent to increase the rice industry’s competitiveness with focus on enhanced technical assistance, research and extension development and infrastructure. Another important component of the project resulted in establishment of a financial facility that offers low interest credit to rice stakeholders.
Efforts have also been made on the legislative front to ensure that there is a level playing field where all rice stakeholders are treated fairly. In this regard, the Rice Factories Act was amended in 2006 to protect farmers from unscrupulous millers who delay their payments for extended period while necessary regulations were developed to further upgrade business transactions in the industry.
            In 2005, a $400M financial package was provided to farmers across the rice growing belt.

more bulletins