Rice - An Unfinished Homework Editorial
Guyana Chronicle
January 11, 2004

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IN COOPERATION with her Caribbean Community partners, Guyana is in a position to supply the sugar and rice requirements that member states may need without having to resort to extra-regional exporters.

But there are CARICOM countries that seem locked into import arrangements that prevent them from purchasing supplies from Guyana even when our commodities remain competitive and of good quality.

For this and related reasons, there is more than passing interest in the current situation that has developed in our CARICOM neighbour, Trinidad and Tobago, where its National Flour Mill (NFM) has announced a 15 per cent hike in the local selling price of rice.

Of particular significance is that protests against such an increase have been quite sharp from no less a source than the country's Minister of Consumers Affairs, Danny Montano.

Just yesterday the Trinidad Express reported Minister Montano as denouncing the NFM as leading a cartel arrangement" in the country.

In alluding to an earlier controversy over the company's increase in the selling price of flour, Montano warned that the government may have to intervene with legislation to prevent the "cartel" practices of the company as they disadvantage local consumers.

'Go to Guyana’
The Minister, who decried the announced price increase without any prior consultation with his Ministry, went further with a call to consumers to eat local root crops like cassava and sweet potato and rice from Guyana. He said that some of the better quality rice was not being supplied to the country by the NFM and "we will go to Guyana".

On the surface, that may seem encouraging for Guyana as the major exporter of rice - as it is also of sugar - in CARICOM.

It is, however, relevant to ask how the NFM could have felt so comfortable in the first place to announce a price increase of 15 per cent, and at the same time claim that rice would still be less expensive against prices for the commodity in other markets of the Community.

At the present time, as indicated last week by Minister of International Trade, Clement Rohee, Guyana was considering new approaches to correct a lingering trade imbalance with Trinidad and Tobago, without prejudice to the government's commitment to intra-regional free trade consistent with arrangements for the emerging Caribbean Single Market and Economy (CSME).

Perhaps Minister Rohee should direct some specific attention to the current situation in Trinidad and Tobago to ascertain how Guyana could benefit from an expand trade in rice - as well as other exports - to that twin-island state to the mutual advantage of both countries and, by extension the consumers there and the rice farmers here.

While the Community as a whole remains committed to the creation of a single economic space with the creation of the CSME, the reality is that there continues to be more than hiccups in arrangements to ensure a level playing field in intra-regional trading arrangements.

Worse, with foreign consumer commodities, among them rice, being imported to the disadvantage of producing CARICOM states like Guyana. This is part of the unfinished homework for the Councils of CARICOM and Trade Ministers in particular.