Free fertiliser for farmers: Tender out for $1B+ contract to supply Govt

…Caricom Rice Mill, Cyril Singh Agricultural Ent among bidders

Two months after President Dr Irfaan Ali had announced that his Government would purchase $1 billion worth of fertiliser to distribute to farmers across various regions, the tender for that project is out, and has already attracted a number of bids.
The bids for this tender, which is seeking a company to supply 5000 metric tons of granular urea fertiliser, were opened at the National Procurement and Tender Administration Board (NPTAB) this week.
According to the tender, the fertiliser would be distributed in Regions One (Barima-Waini), Two (Pomeroon-Supenaam), Three (Essequibo Islands-West Demerara), Four (Demerara-Mahaica), Five (Mahaica/Berbice) and Six (East Berbice-Corentyne).
Among the bidders, Caricom Rice Mill Limited entered a bid of $1.1 billion and Dax Contracting Services entered a bid of $1.2 billion. Cyril Singh Agricultural Enterprise Incorporated had a bid price of $495 million. Meanwhile Rayaadul Hakh Rice Industries bid in Regions One, Two, Three, Four, Five and Six.
In May, President Dr Irfaan Ali had announced several measures aimed at cushioning the effects of the rising cost of living, among which are the purchase of the fertiliser as well as $25,000 cash grants for households in riverine and hinterland communities.
Support is being provided to these two groups, since they have been severely affected by the cost-of-living increases which resulted from the global effects of the COVID-19 pandemic and the Ukraine-Russia war.
According to President Ali, the fertiliser would aid farmers in their planting and replanting activities.
“The second measure I wish to look at is fertiliser support to farmers. In order to cushion the impact of the rising cost of fertiliser on farmers, and to limit the pass-through to food prices, my Government will be purchasing one billion dollars’ worth of fertiliser for free distribution to farmers, for use in planting and replanting activities,” he had said.
According to the President, this initiative is being done “considering that fertiliser accounts for between 15 to 30 per cent of the total operating cost for farmers. This initiative will significantly reduce input cost, and help ensure scaled- up production and adequate supply of output, which is critical to maintaining price stability.”
During a visit with farmers in Region Six, Vice President Bharrat Jagdeo had revealed that a 20-member committee has already been formed to determine how the fertiliser would be procured and distributed among the farmers.
The Vice President has said that establishment of the committee would ensure the equitable distribution of the fertiliser, and prevent attempts by persons who do not qualify for the support from depriving those in need.
Explaining that Government had set aside the $1 billion in fertiliser support for the country following consultations with farmers, the Vice President had told the farmers that even though the People’s Progressive Party/Civic (PPP/C) Government had removed the 14 per cent tax that was placed on fertiliser by the former A Partnership for National Unity/Alliance For Change (APNU/AFC) Government, the prices continue to climb due to the rise in oil prices.
“So, every time crude oil goes up, the price of fertiliser and everything else goes up; and oil prices have moved from $28 in 2015 per barrel of crude oil to $120 per barrel, so it’s a steep climb… It’s largely been because of the war in Ukraine,” the VP had explained.
A prevalent issue for many Guyanese in recent times has been increases in the prices of food items. The high cost of fertiliser has been cited as a contributing factor to the major increases in local food prices. Guyana imports most, if not all, of its fertilisers for the agriculture sector. (G3)