Government pursuing more activities to develop rice industry
 
Georgetown, GINA, September 13, 2007.

The present administration remains committed to the continued improvement of the rice industry by increasing competitiveness and ensuring that the necessary framework and organisational structures are enhanced to support the industry’s growth. 
            This objective is being further pursued through emphasis on re-organisation of the Guyana Rice Development Board (GRDB) to help farmers overcome the challenges facing the sector. In this regard, approximately 300 persons involved in the rice industry are engaged in a national consultation to formalise a strategy paper to enhance the efficiency of the GRDB. The exercise was held at the Buddy’s International Hotel, Providence, East Bank Demerara.
            This restructuring process, according to Minister of Agriculture Robert Persaud is intended to improve the Board’s capabilities to support farmers’ activities and prepare the sector for the future with focus on current issues. Engaging key stakeholders in the restructuring process is therefore, crucial to ensure that all aspects of the sector and levels of the organizational structure are addressed.
             Gearing the Board to respond to current challenges is important, taking into account issues such as the removal of preferential treatment by the European Union (EU) for rice, current weather pattern and the high production cost, which all have a severe impact on the local industry. Reference was made to the negative effect of thechanges, which brought down production to as low as 291, 000 tonnes after 1997 and to 273, 000 tonnes as a result of the 2005 flooding. In addition, there were major reductions in exports and earnings around these periods.
            However, Government’s commitment to rice development has resulted in substantial investments and major interventions to restructure the industry and ensure viability and which have been showing encouraging results, particularly over the past year. There have been improvements in the overall performance of the industry and it is anticipated that this trend will continue with Government’s continued support.
            Additionally, it has been observed that more millers and farmers are making the necessary adjustments to support modernisation of the industry since there have been investments in improved technology, facilities and practices.  There has also been increased interest in value-added activities.
            These actions along with Government’s interventions are likely to result in increased production, competitiveness and overall expansion of the industry. Thus, re-organisation of GRDB is necessary to lead the sector in the direction that will realise its potentials.
            Stakeholders were urged by GRDB’s General Manager Jagnarine Singh, Millers’ Representative Peter de Groot and General Secretary of the Rice Producers’ Association Dharamkumar Seeraj to focus more on ways of improving the functions of GRDB rather than deliberating on its problems.
GRDB was established in 1995 to develop the local rice industry. The mandate included promoting the expansion of export trade, establishing facilities to conduct research and transferring the technology to farmers. The Board’s formation was done in accordance with the GRDB Act of 1994 and replaced three main entities – the Guyana Rice Export Board (GREB), Guyana Rice Milling and Marketing Authority (GRMMA) and the National Paddy and Rice Grading Centre (NPRGC).
            Re-organisation of GRDB is among the many initiatives being pursued by the administration to ensure rice viability in Guyana. At present, more than $8M is being invested in this sector under various programmes targeting infrastructure, research and extension and rice seed development.
            Recently, Government announced the waiver of the Value Added Tax (VAT) from spare parts for tractors and combines used in the rice industry as another intervention to help rice farmers deal with the increasing cost of production. Fertilizer has been previously exempted from VAT while discussions have been held on the price of fuel, which is also contributing to increased cost of production.
Additionally, the Rice Factories’ Act was amended during last year to ensure a level playing field and fairness, especially payments to rice farmers by millers. The Amendment to the Rice Factories’ Act makes it mandatory for millers to pay a minimum of 95 percent of outstanding purchases to farmers at the end of the year before their mill/export licenses are renewed.
            Other interventions by Government include implementation of the Rice Competitiveness Project with an investment of approximately $3B and the Agricultural Support Services Project (ASSP). Under the competitiveness project, $1.6B is being invested in a financial facility that will provide credit for working capital and capital investments to rice stakeholders. This initiative is one of the most important interventions by Government to resuscitate the rice industry

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