Remarks by Hon. Robert Persaud M.BA; M.P

At

Commissioning of RPA Paddy Storage Bond

Crane, West Coast Demerara

August 30, 2007

 

 

 

Thank you Mr. Chairman

 

It gives me great pleasure to participate in today’s commissioning of another piece of investment by the RPA for farmers.

 

Not many years ago, the task of stocking inputs to processing paddy to marketing rice and rice products was an undertaking performed primarily by Government? Today, the whole range of economic tasks within the rice industry, including the provision of valuable services, is now performed by the private sector.

 

And the RPA on behalf of farmers has been at the forefront of this initiative over the past decade.

 

The organization has moved from being just a representative body in its early stages; to a pressure group in the 70’s, and 80’s; to a lobby and genuine development partner over the last 15 years.

 

This is no mean achievement for a farmers’ organization to have withstood the pressures of the differing eras of Guyana’s history and still be successful today.

 

But with strong leadership and genuine support by its wide membership, the RPA is once again extending itself to improve and enhance the services provided to our rice farmers.

 

It is therefore my hope that the beneficiaries and users of this newly constructed storage facility will ensure its optimal use and care, for as long as possible.

 

To do otherwise will be counterproductive to the drive for improved efficiency and enhanced competitiveness of our rice farmers, and rice industry, as a whole.

 

It must be recognized that to survive in a global sector, our farmers and institutions have to adapt to the many changes and challenges taking place on an almost daily basis.

 

To go back not so long ago, when our rice industry was booming in the mid 90’s, unilateral changes to the import regime in Europe had a devastating effect on the export price for rice and the long term damaging impact of this decision still affects us today.

 

But even as we still suffer from the shocks in Europe, unfavourable weather and sky-rocketing prices for in-puts are also affecting the leaps of growth the sector is expected to perform to ensure its viability.

 

This season, in addition to the continued rising fuel cost and almost 30 % increase in the price of urea, farmers have been severely constrained by an extended period of heavy rainfall resulting in a much reduced crop.

 

The reason I mention these issues is to emphasize that to remain globally competitive, we must recognize that the most important factors affecting our production and productivity are not controlled by us.

 

The onus is on us, therefore, to continue striving for greater and more innovative ways of producing and marketing our rice.

 

At the level of the Ministry of Agriculture, we will ensure that all the necessary policy instruments and strategies and public good interventions are made available to the rice sector. But the positive benefits from these measures will only be realized through your responsible actions and critical support.

 

The Ministry will host soon a sector consultation to discuss the tools and inputs necessary for the re-organisation of the Guyana Rice Development Board.

 

We have recognized that institutional strengthening and strategic adjustments to the mandate of the Board are integral to meeting the challenges that lay ahead.

 

Additionally, other initiatives are being pursued at present to benefit the sector directly.

 

It is therefore my expectation that you will also play your part as we strive to further develop our rice sector and economy as a whole.

 

I am heartened by this total approach and comprehensive agenda to improving the livelihood of our farmers that the RPA is pursuing at present. These actions only augur well for the future.

 

In discussions with the General Secretary and other leading members of the organization, I have been advised that other pursuits are also being looked at and I must assure you that we are committed to ensure their reality and full benefit to the sector.

 

And this is no idle talk. Our partnership with the RPA has been long and successful. We have invested directly and facilitated in all instances, the investments and interventions undertaken by the RPA.

 

The seed processing facilities at Anna Regina, Leguan and right here at Crane, and the soon to be constructed seed facility at Black Bush Polder are all indicative of our contribution to building and diversifying the roles of the RPA in partnership with the Government and other agencies.

 

And so too are the efforts we have made in rehabilitating and maintaining the national drainage and irrigation system, constructing farm-to-market access roads, waiving tax controls on agricultural inputs, regularizing and distributing land leases with improved collateral benefits, providing a financial facility with concessionary credit terms, modifying paddy and rice trade regulations, and so on.

 

We have recognized that whilst building institutional capacity of the organization is fundamental, it is also important that we provide resources to put its plans into action.

 

So to be present here to participate again in another commissioning, this time a storage bond, I feel vindicated that even though the future is challenging, we are up to the task.

 

Storaging paddy, milled rice and seed have always been an issue of concern to us since it is so critical to a successful marketing strategy. I only hope, therefore, that this is not the last such facility constructed, whether by the RPA or individual farmer or miller.

 

Storing and storaging are sector- controllable factors that have many benefits, which if pursued with the requisite vigour and interest, will certainly contribute to greater quality management, improved seed production and productivity, reduction in processing and post harvest losses, reduction in total cost, enhanced negotiating capacity and overall increased competitiveness.

 

 

Climate change is a very important matter and must be taken into consideration once we are into cultivation. The current weather patterns are not allowing us to operate in a timely manner.

 

 

 

Recent Major Interventions by Government in the Rice Sector

 

 

Financing

 

§         Approximately $8 billion worth of loans were restructured and rescheduled through the initiative of the President of Guyana, His Excellency, Bharrat Jagdeo.

 

§         $400 million rice relief package – Government provided to support farmers affected by rising cost of production and effects of flooding in 2005/2006.

 

§         1.625 Billion – Financing to provide low cost credit for rice Farmers/Stakeholders through GBTI-Administered Credit Facility (6-11% Interest Rate)

 

§         $30M Seed Facility at Black Bush Polder launched yesterday.

 

§         $120M Seed Facility at # 56 village.

 

Concessions

 

§         Waiver of CET on fertilizer imports – on a needs basis, Government has continued to waive duties on fertilizer imports to counter the high acquisition cost to farmers.

 

§         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.

 

§         Value Adde Tax was exempted from fertilizers, all pesticides, harrows, ploughs, and other machinery used in rice cultivation.

 

Drainage & Irrigation

 

• Acquisition of machinery for MMA/ADA – Government access an Italian soft loan of approximately $900 million utilized to procure equipment for water management rehabilitation in the MMA.

 

• $950 million expended to procure 19 excavators through the NDIA to conduct D&I works.

 

• Approximately $2 billion expended annually through NDIA for D&I improvement.

 

• Approximately $1 billion expended by Task Force on Drainage and Irrigation following aftermath of 2005 floods

 

• $735 Million - Water Management Rehabilitation in Region 2 - Dawa Pump, Westbury and Golden Fleece Sluices.

 

• Establishment of 12 WUAs across the country to be involved in direct and sustainable management of secondary D&I systems.

 

 

 

 

Protection of Farmers:

 

§         Rice Factories Act Amendment – the Act was amended by Parliament after presented by Minister Robert M. Persaud in 2007 to make it necessary for millers to pay farmers in a more timely manner or face penalties including non-renewal of licenses and interest charged on outstanding payments.

 

§         Regulations on weight and grading – in 2007, Minister Robert M. Persaud has signed, into order, these regulations to ensure that paddy purchasing is regulated more efficiently

 

Farm to Market Access:

 

§         Approximately $500 million provided to rice farmer by Government through the PRCSSP – In 2006-2007, 12 miles of farm to market access roads and drainage and irrigation projects were completed.

 

§         Drying Floors – drying floors were constructed at different farming locations (Vergenoegen, Crane, Anna-Regina & Leguan.

 

§         Seed Paddy Factories – Seed Paddy Factories were constructed at Crane, Anna-Regina & Leguan

 

Research:

 

• Enhanced Research –support to GRDB’s research and extension efforts through capacity building and institutional support.

 

• Seed Paddy distribution – through the GRDB Rice Research Station, approximately 20, 000 bags of seed paddy is produced and distributed to farmers across the country, every season, on a reduced price basis.

 

• Rice Varietal Development – Blast resistant and high yielding variety G 98-135 released in 2005.

 

§        $250 Million – (Research & Extension) Granted to GRDB to conduct seed production, extension, certification and improving production technology.

 

§         Technical Cooperation – in 2005, the Latin American Fund for Irrigated Rice (FLAR) provided 460 improved high yielding lines for evaluation in Guyana.

 

§         $250 Million – Provision of Technical Assistance for institutionalization strengthening and capacity building, rice processing & lost reduction, business & credit development and Research & Extension.

 

 

 

 

 

 

Extension:

 

§         Farmer Field Schools – in excess of 7,000 farmers, countrywide, were involved in technology transfer and training through the FFS approach. Thirty Farmers’ Field Schools were established throughout the country.

 

§         Paddy Bug and Red Rice: Population reduced significantly through the intervention of the extension services.

 

§         Inter Regional Exchange: Farmer visits were conducted to facilitate interface and experience sharing. Farmers from Guyana also visited Suriname to examine Crop Management Practices.

 

§         Farmers’ training: continued under the ASSP in Regions 3, 4 & 6.

 

§         GRDB & RPA – Provides extension services in Regions 2, 3, 4, 5, & 6. There is a total of 25 Extension Officers allocated to serve these areas. 

 

 

 

 

 

Land Tenure:

 

§         Lease of approximately 1300 acres of rice lands to farmers in Mahaicony – MARDS lands (2007)

 

§         Land leases to rice farmers – 2,700 leases totaling more than 30,000 acres were distributed to rice farmers between 2005 – 2007.

 

Support & Training:

 

§         Support to RPA – a seed plant and a storage bond ($75 million) was built by the RPA at Anna Regina. Drying floor & seed classifier ($40 million) at Crane, W.C.D.

 

§         Training – three young scientists have been trained in India in plant breeding, entomology and plant pathology. Scholarships have also been provided for students to attend the University of Guyana.

 

§         Rupununi Rice Project – 200 bags seed paddy were provided to Beacon Foundation to promote sustainable rice production in the Rupununi Savannahs.

 

§         $150 Million – For administration and operation of the GRPMU over a three years period.

 

 

 

 

Diversification:

 

• Special Rice Diversification Project – 2 seed plants in Crane and Leguan have been established, a rice fish diversification project launched and seed paddy produced for farmers costing more than $110 million.

 

• FAO/MoA Regional Rice/Aquaculture Project – approximately $36 million shared between the rice sectors of Guyana and Suriname.

 

 

 

 

 

In summary colleagues, this initiative is the type of action that we can perform and control ourselves to ensure a competitive and viable rice sector.

 

Long gone are the days of price control and price setting. In today’s global economy, competition is premised on reliability of supply, quality of product and lower consumer price as a single factor of success in the marketing chain. This investment can contribute significantly to that success factor; and if multiplied across the country, the potential national benefits are immense.

 

I therefore urge that as we congratulate the RPA in bringing this endeavour to fruition, we must not stop exploring and investing in undertakings which will improve our economic potential as a sector and livelihood as individuals.

 

Once again it is a pleasure to be here today to participate in the commissioning of the RPA storage bond and I look forward to continue working with you as we strive to move the rice sector forward, producing and exporting rice for the benefit of all Guyanese.

 

 

I thank you.