Farmers upset as millers reduce price for tonne of rice

…world market determines price – millers

By: Andrew Carmichael

Scores of rice farmers from Black Bush Polder, Region Six (East Berbice-Corentyne), on Tuesday took to the streets in protest over an apparent decision taken by millers to decrease the amount they pay per tonne of rice.
The two rice millers operating in the area reduced the price being offered per tonne of rice from $70,000 per tonne to $65,000 per tonne.

The farmers blocked roads, cutting off communities in their protest action.
On Sunday the mills were paying the higher price but on Monday when farmers took their paddy to the mills, they were offered $5000 less per tonne.
The rice farmers gathered outside of Rayaadul Hakh Rice Industries at Lesbeholden and another at Amazonia Rice Investment Inc at Johanna.
They are demanding more for their paddy and are refusing to accept what the millers are offering.

The millers, however, said that it is the world market that determines how much they can pay for paddy.
But the farmers are furious, saying that for the current crop, their expenses were much higher than previously, with the cost for manure, fertiliser, labour and lad preparation all being increased.
The price to rent land has moved upwards also. For 15 acres which the farmers refer to as a plot of land, rental moved from $300,000 to $500,000.
The farmers are calling on governmental intervention.
Many were forced to abandon their vehicles and walk home. Rice farmers taking their paddy from the fields to dry it also could not pass.

Demanding meeting
Regional Chairman David Armogan met with the farmers who were demanding that the Agriculture Minister meet with them. He told them that the Agriculture Minister was meeting with millers and they will be informed later of what came out of that meeting.
At Lesbeholden, the road was blocked, shutting off a part of that polder and the entire Mibicuri.
One farmer who cultivates 380 acres noted that while the price being offered to them has dropped, the investment he made tells a different story.
According to Ragindra Pidanha, the price of fertiliser raised to $11,000 a bag. He pointed out that during the last crop he was paying $6000 a bag for fertiliser but during the crop, it gradually raised to $8000 and for the current crop he paid $11,000 for bag.
Devindra Tooteram, who has 30 acres under cultivation, told this publication that insecticides that he used jumped from $5500 per bottle to $7500 per bottle.
Meanwhile, another rice farmer, Devendra Suki, who cultivates 650 acres, explained that the reduction in price being offered is the profit that he makes as a rice farmer.
“They were paying $70,000 and all two mills made one drop yesterday morning to $65,000. Right now, we are losing $300,000 on every 15 acres. That is the money we should make for ourselves,” he said.

Many of the farmers credit their farming material from the miller during the crop and the money is deducted when they take their paddy to be sold while some farmers take loans from financial institutions to go into the crop.
A check with one retailer revealed that fertiliser rose from $5000 to $10,500 per bag. Manure is $10,600 per bag. The price for seed paddy moved from $6000 to $10,000 per bag.
Farmers also say they have to invest $100,000 in diesel to prepare each plot of land, totalling 15 acres.
Farmers who do not have the relevant equipment have an additional cost of $300,000 to prepare each 15-acre plot.
Currently, farmers are reaping an average of 600 bags of paddy from a 15-acre plot of land.
Barbara Felix, who cultivates a plot at Johanna, said it is impossible for her to make a living at the current price she has to pay to rent land. She cultivates one plot of land and pays half a million for rental.
She said they are being robbed by the millers. According to Felix, when the rice is graded and there is coloured or broken rice, it is separated and the farmer is only paid for the perfect grain.
“We are not getting that. They are still keeping it and not paying us for it. They should give us that rice; it belongs to us so that we can sell that and get back some more money. It is very unfair, she said.”
Meanwhile, the Private Sector Commission is expected to meet today with the Guyana Rice Exporters and Millers Association to hold discussions on the rice industry.