Govt urged to shake up GRDB operations, reduce red tape

…removal of VAT on equipment, exports lauded

While the Guyana Rice Exporters and Millers Association (GREMA) is lauding the President Dr Irfaan Ali-led Government’s initiative to remove taxes from equipment and exports, it has recommended that attention be paid to the bureaucracy that surrounds shipping rice.
In an interview with this publication, GREMA President Rajendra Persaud hailed the removal of taxes, including Value Added Tax (VAT) and duties, on the importation of equipment which would be used in sectors that include rice.
Persaud, who is chairman of the largest rice milling operation in Guyana, Nand Persaud and Company, also lauded the removal of VAT on exports as well as electricity. These, according to Persaud, are likely to boost competition.
“I want to compliment the Government for taking that initiative. I think it is a brave and bold move, and it is in the right direction. When you factor in the VAT on electricity and the VAT on exports, those two are big factors (as well),” Persaud said.
“With those removed, it gives us a better advantage. And definitely the farmers are going to see the benefits. There will be a trickle-down effect to the farmers, because it makes us more competitive and we can pass it on to the farmers,” he explained.

Bureaucratic structure
Persaud urged the Government to look into the bureaucratic structure of the Guyana Rice Development Board (GRDB) and decide on a way forward that would reduce the red tape.
While GRDB has announced $30 billion in rice export earnings, Persaud explained that steps can be taken to make the industry even more profitable.
“The Rice Board has too much regulation. So, in a sense, it’s not helping the industry; it’s suppressing the industry. There’s too much bureaucracy. That is making exporters less competitive. I think the Government should take a deep look into it and make it competitive.
“For instance, when you export, the Rice Board certifies export. And you have cases where the customer, they’re okay with the quality of the rice, but the Rice Board doesn’t want you to export it, because they feel that it doesn’t reach certain requirements,” he had said.
General Manager of GRDB, Nizam Hassan, had announced on Tuesday that Guyana has earned over $30 billion from rice exports for the period January to August 2020, after exporting 343,068 tonnes of rice – an improvement from the situation last year.
The rice exports, worth some $30B, represent an increase by six per cent in volume and seven per cent in value when compared to the 325,052 tonnes sold for the same period last year. This is according to General Manager of the Guyana Rice Development Board Mr. Nizam Hassan.
For those CARICOM countries including Dominica, St. Vincent and Jamaica, over 50,000 tonnes of rice was shipped at a cost of over US$25 million. Additionally, Guyana has earned more than US$66 million from January to August 2020 for shipments to the European Union.
Providing an analysis for each district, the General Manager disclosed that of the 14,149 hectares of rice sown, farmers in the Pomeroon-Supenaam (Region Two) district have completed harvesting 44.4 per cent.
He added that over 8,000 hectares were sown in Region Three (Essequibo Islands-West Demerara), with 3,753 hectares — 44.1 per cent — harvested at the completion of September.
As for Regions Four (Demerara-Mahaica) and Five (Mahaica-Berbice), over 3000 and 42,000 hectares were sown respectively. On the other hand, farmers were able to reap some 2000 hectares in Region Four and those in Region Five yielded some 19,000 hectares.
Meanwhile, the GRDB projects 1.1 million tonnes of paddy would be produced for 2020.