Days after reports surfaced that Panama had rejected some 20 containers of rice from Guyana, another shipment is expected to leave these shores soon for that country.
This was related to Guyana Times by President of the Guyana Rice Exporters and Millers Association (GREMA), Rajindra Persaud, following a meeting with rice millers held at the John Fernandes head office on Water Street, Georgetown.
Persaud said that in approximately two weeks’ time, Guyana would be required to resend some 20 containers of rice to Panama, since the last shipment had failed to meet the specification.
Guyana’s rice was rejected on arrival in Panama since it did not meet the stipulated specification as was outlined by that country.
“The containers are being reshipped to Guyana…the contract was for white rice, and parboiled was shipped; that is the issue,” Persaud explained.
He pointed out that, as of now, the impact of the faulty rice being shipped does not
GREMA President Rajindra Persaud
seem to be detrimental to the relationship between the countries, but he did say that this will be determined in another two weeks, when the rice arrives.
“I don’t think there is any concern there…we just have to replace the stuff,” he noted.
Several calls made by this publication to the Managing Director of the Guyana Rice Development Board (GRDB), Nizam Hassan, went unanswered. He was, however, reported in sections of the media as saying that the matter was being addressed by the Guyana Rice Development Board (GRDB), since it is unclear what actually had transpired in Panama.
The GRBD has come in for some harsh criticism from the Chief Executive Officer (CEO) of the Alesie Group of Companies, Turhane Doerga, who questioned the rationale for shipping the rice to Guyana’s most lucrative market without an inspection being done.
Back in 2014, Guyana had signed a five-year agreement with Panama, under the previous administration, to have its product marketed.
With the collapse of the lucrative PetroCaribe (rice for oil) Venezuela market in 2015, the challenges faced within the rice industry have been significant.
The PetroCaribe deal was set to expire in November 2015, but Venezuela axed the rice deal months before the official due date. However, Government had said that the Spanish-speaking nation may still be purchasing Guyana’s rice, but through neighbouring Suriname.
The PetroCaribe deal was sealed by then President Bharrat Jagdeo and late Venezuelan President Hugo Chávez. Under this deal, Guyana was required to pay upfront a percentage of the cost of fuel acquired from Venezuela, with the balance, which was placed in the PetroCaribe Fund at the Bank of Guyana, being treated as a loan repayable over 23 years with a two-year grace period and two per cent interest.
