The strategy for rice development National Development Strategy
By Kenneth King
Stabroek News
February 24, 2002

The authors of the National Development Strategy (NDS) are in no doubt that the rice industry is capable of making an even greater contribution to the development of Guyana than it now does. In order to ensure that this occurs, they have devised a strategy which seeks to enhance its competitiveness by increasing its productivity, by securing and expanding its markets, and by removing those institutional constraints which now hamper its growth.

Accordingly, they recommend that a research programme based on both market demands and the experience of farmers should be developed and implemented. They stress that such a programme should be based on the farmers' perception of field-level problems and should lead to the long-run sustainability of the rice sector. Moreover, they emphasize that research should concentrate on increasing productivity, decreasing the variability of yields, increasing pest resistance, improving quality, and developing and maintaining those characteristics that are demanded by export markets and domestic consumers. They also urge that rice extension services should embrace more than the traditional task of providing information on production techniques and inputs such as seeds and agro-chemicals, but should in particular include farm management as a core activity.

In addition, because the present systems of drying and storage are moribund, obsolescent, and wasteful, the NDS suggests that a review of these operations should be undertaken in order to effect improvements in those processes that are so crucial to the attainment of increases in yields and quality.

Furthermore, the NDS considers it a vital part of the strategy that a machinery and input pool should be established in order to reduce the costs of production. One of the problems which the authors of the NDS have identified as exerting an inhibiting influence on the profitability of the industry is the virtual absence of adequate market information. They realise, also, that information linkages, particularly in the areas of market intelligence and research, are especially vital to the future prosperity of Guyana's rice sector. They have therefore put forward a scheme for the Guyana Rice Development Board to establish a Market Information System to which all rice farmers and millers would have ready access. Moreover, the NDS suggests strongly that the industry should be assisted by the relevant government ministries to continue to access the markets of the European Union, Caricom and Africa. The NDS also describes the steps which should be taken to help the sector to develop further markets in the broader Caribbean, particularly in Haiti and Cuba, and in other countries of Latin America. It asserts that although the use of Information Technology would be of special importance in this regard, the underlying mechanism should be systematic and structured cooperation among the relevant ministries, our embassies, and the industry itself. Furthermore, in order that it might be in a position to penetrate these new markets successfully, the NDS encourages the industry to establish a consortium among themselves with the capacity to export large shipments, develop export strategies, and operate an effective market intelligence service.

The authors of the NDS hold the view that even if rice productivity were significantly increased, and suitable markets were found for our products, the industry would still encounter problems unless certain institutional obstacles to its development were overcome.

It therefore proposes, among other things, that (i) a permanent, formal, and appropriate mechanism for bringing together the primary institutions of the agricultural sector to discuss and resolve such issues as land use, the necessity for laying down more infrastructure for the opening-up of new rice lands, competition for scarce water resources, and the rationalisation of drainage and irrigation operations, should be established; (ii) the capacity of the Guyana Rice Development Board to formulate and get implemented a set of regulations and standards relating to contractual procedures, payment negotiations, rice quality, etc., should be strengthened; (iii) a satisfactory mechanism for arbitrating contractual disputes in the rice industry should be formulated and enacted; and (iv) the Rice Producers Association and the Guyana Rice Millers and Exporters Development Association should be provided with assured financial support.

In return these institutions should establish systems for the full representation of their members, including transparent, democratic elections. And furthermore in this regard, the NDS recommends that within the general policy of facilitating credit to Guyana's producers, measures should be taken to ensure adequate funding for rice producers and millers. These should include group lending, and the possibility of converting existing leaseholds to transferable tenures which could be used as collateral.

The final step in the overall strategy is the insistence of the NDS that the rice industry should be diversified, if it is to be enabled to meet its full potential. It therefore strongly recommends that fiscal incentives be provided for the production of such value-added goods as rice flakes, popped rice, rice straw (for mushroom production and as a ruminant food) and husks (for use as a fuel in concrete production). The authors of the NDS are convinced that if the strategy adumbrated above is put in place, the demand for rice would increase to such an extent that it would be necessary for the areas now devoted to rice cultivation to be expanded. They note that this would require close coordination among relevant agencies, so that the lands which offer the highest potential for rice production, might be more precisely identified. They are of the view, however, that the best areas for expansion, given the quality of their soils, are:

Region 6 ...........................................................Acres
Potoco, Left Bank Canje River ..........................45,000
Black Bush Backlands ......................................15,000
Manarabisi .........................................................8,000
Jackson/Moleson Backlands .............................17,000

Region 5
Acres MARDS - South of Jagdeo Canal ...........20,000

Region 3
Hogg Island..................................................... 10,000

Region 2
Akawini/Pomeroon............................................ 5,000
South of Supenaam River ..................................5,000