Guyana rice industry at crossroads -- EU official warns
By Chamanlall Naipaul
Guyana Chronicle
December 14, 2006
A TOP European rice expert is urging local rice millers/exporters and other stakeholders in the industry to move to enhance their competitiveness as the days of governmental subsidies are over with the emergence of the liberalisation of world trade.
Head of the European Union (EU) technical assistance team (TAT), Mr. Graham Garrod yesterday stressed that the “days of subsidies and handouts to individual millers are over” and under the new global dispensation the role of governments is limited to creating the right environment for business and the execution of international trade negotiations.
At a consultation on post harvest techniques at the Hotel Tower in Georgetown, he said government acts as “a catalyst to help you help yourselves and develop your own businesses” to the required international standards to be able to compete on the markets.
Garrod identified quality, reliability and selling at the right prices as the hallmarks towards being able to be competitive on the international market.
Guyana’s rice industry, he said, is at the crossroads and if it is not competitive “will not stand a chance to compete on the world market.”
In this regard, Garrod said, rice millers have a crucial role to play, adding that for Guyana’s rice industry to become globally competitive, individual millers have to become more competitive themselves.
At the forum, Agriculture Minister, Mr. Robert Persaud underscored the need to develop an “atmosphere of trust and ownership” between millers and farmers to accelerate development of the industry.
In an obvious reference to millers who have large outstanding payments to farmers, he decried some millers for “depriving farmers from enjoying the fruits of their labour” but commended the majority of millers for honouring their obligations.
He assured the gathering that legislation is in train to amend the Rice Factories Act to have millers settle 95% of their payments before their export licences could be renewed; and for payment by millers of interest rates based on the average commercial bank rate if they exceed 42 days in paying farmers.
However, Persaud explained that the legislation will also cater for exemption of millers from these conditions for justifiable reasons as the government has recognised that they sometimes face difficulties as well.
Noting the government’s “abiding interest” in the rice industry he reiterated its commitment to whatever is necessary to ensure that it remains viable and competitive, including refurbishing facilities and ensuring farmers are paid promptly.
He also said the government will be holding wider consultations on initiatives to further accelerate the preparations to meet the challenges of sustainability that face the industry.
The minister said that under the EU rice assistance programme some $3 billion has been invested in several projects and the benefits will be felt at all levels a few months from now.
He urged stakeholders to optimise the use of these investments as well as that made by the Guyana Government to ensure that the industry gets maximum benefit from them.
Persaud asserted too that the socio-economic importance of the rice industry must not be lost as it is a major source of employment, foreign exchange earnings and food security in the region.
Observing that Guyana’s rice industry is export-oriented, the minister stressed that post harvest management techniques are critical to satisfy the requirements of international markets, including sanitary and phyto-sanitary standards.
He also announced that the Guyana Rice Development Board (GRDB) will be restructured in accordance with the overall changes taking place within the industry.
Guyana is among several countries benefiting from an EU Rice Assistance Programme and is benefiting directly from 12.7M Euros from the total sum of 24M Euros allocated for this purpose.
The overall objective of this programme is developing the competitiveness of the rice growing countries within the African, Caribbean and Pacific (ACP) group of nations, thereby contributing to their economic and social development which could be adversely affected by trade liberalisation.