Millers owe Wakenaam rice farmers millions

Months after selling tonnes of paddy to several millers, farmers on the Essequibo island of Wakenaam, in Region Three (Essequibo-Islands-West Demerara) are entering the current crop with uncertainty as they are owed millions of dollars in outstanding payments.Guyana Times interviewed persons within the industry who related that the payments have not been forthcoming despite pleas by farmers.
An insider disclosed that some “50 per cent” of the farmers who planted for the last crop were not paid by millers who bought significant amounts of paddy.
“There were some cash payments in Leguan but Wakenaam farmers have yet to be paid,” Guyana Times was told on Wednesday.
More alarmingly, it was pointed out that the 42-day period in which the farmers were supposed to be paid their outstanding monies has expired. Despite this, some farmers went into their reserves and undertook preparations for the current crop while others remain cautious of entering rice cultivation with depleted earnings and inclement weather conditions.
According to the Rice Factories (Amendment) Act of 2009, the manufacturer, being the miller is required to pay the paddy producers half the amount within two weeks after receiving the paddy while the remaining payment must be disbursed within 42 days of the parities signing the agreement.
“…Fifty per cent of the total amount of $……will be paid to the producer within two weeks from the date of receipt of the paddy and the remaining amount will be paid within forty-two days of the signing of this agreement,” the section of the law stipulates.
Another noted challenge was the cost to transport farming materials to and from Wakenaam. In this vein, stakeholders highlighted the reduced visits with operatives attached to sub-agencies of the Agriculture Ministry, including representatives from the Guyana Rice Development Board (GRBD) and the National Agricultural Research & Extension Institute (NAREI).
“Cost of production is higher than other areas and there is no rice extension officer available to give technical advice,” this publication was further told.
It was also alleged that the last time a GRBD representative visited the island was around four months ago.
Wakenaam rice farmer Takur Persaud told this newspaper that at present, they are receiving $1800 to $2000 per bag of paddy. He lamented the inability of famers to return to the next crop. He also explained that he sold to three millers (names provided) and has not been paid in almost three months.
“We not getting paid, we an know how we will go back. We an get pay over 2-3months. We want the money to go back and plough,” Persaud pointed out.
Meanwhile, farmers are now able to access fertiliser and repay the GRDB at the end of each crop through a credit system following repeated calls for assistance. However, Persaud related that while some farmers will get the fertlisers easier, many have opted against preparing their lands for cultivations due to their outstanding payments.
“If you nah mek up de the land, how you gan use de fertliser,” the farmer questioned.
“Urea is $4000 a bag and 15:15 fertliser is about $6500,” he further pointed out.
He then explained that one miller had paid them $2000 per bag for a previous crop but they are not sure what they will gain from the crop for which they are owed. He claimed that while he sold some 300 bags, the farmers were not given vouchers, so they aren’t sure how much they will get.
He related that if the current situation continues, he is unsure if he can still continue in the rice industry. “People leff they land, they can’t make it,” stated Persaud.
Ever since the end of the PetroCaribe (rice for oil) deal with neighbouring Venezuela in 2015, rice farmers have seen reduced earnings for their paddy. This situation is coupled with the declining rice markets.