Amended Rice Factories Bill passed
Guyana Chronicle
January 12, 2007

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THE Rice Factories (Amendment) Bill, which seeks to deal with the persistent problem of outstanding payments to rice farmers by millers, was approved in the National Assembly yesterday.

But this was after contentious debate between the government and opposition with the latter claiming that the legislation could aggravate the very problem it seeks to address and could adversely impact on the rice industry and the livelihood of farmers.

Agriculture Minister, Mr. Robert Persaud, in moving the second reading of the bill, told the House that the proposed legislation was being piloted against the backdrop of most farmers being affected by payment problems.

He explained that the amendment to the Rice Farmers Act makes it mandatory that millers pay a minimum of 95% of outstanding purchases to farmers at the end of the year before their export licences are renewed.

It also seeks to have millers pay an additional two per cent interest rate on the existing commercial bank rate for outstanding payments in excess of three months.

However, Mr. Anthony Vieira and Mr. James McAllister of the People’s National Congress Reform–One Guyana (PNCR-1G) contended that the contents of the bill will act as a disincentive to millers and could cause them not to purchase paddy from farmers which would have dire consequences for the industry, farmers and the national economy.

The latter also contended that when things were good in the rice industry, farmers did not experience payment problems, while the former contended that it is a ploy by the government to appease disgruntled farmers because of political considerations.

McAllister urged that the bill be sent to a Special Select Committee as it deals with a very important industry.

Co-leader of the Alliance for Change (AFC), Mr. Khemraj Ramjattan while agreeing in principle that farmers need to be protected, argued that the problem has to be looked at in its greater entirety to ascertain its underlying cause in order to arrive at a solution.

Instead of only focusing on penalties for defaulting millers, he advocated in addition that a credit fund be established to facilitate both millers and farmers because he claimed that the payment problem is created as a result of exporters obtaining their monies from their overseas clients.

However, Persaud responded to this by announcing that a credit facility is already in the making under the Rice Competitiveness Programme being funded by the European Union with 45% of the funds allocated dedicated towards this facility.

The minister disagreed with the contention that the penalties are a disincentive to millers, countering that they were consulted on the issue and are in agreement with the legislation.

He was supported by Mr. Dharamkumar Seeraj of the People’s Progressive Party/Civic (PPP/C) who is also the General Secretary of the Guyana Rice Producers Association.

He further contended that a mill can only be operated with a reliable supply of paddy and an exporter could only meet his market requirements if supplied with the right quality and adequate and timely supply of paddy. (CHAMANLALL NAIPAUL)