Millers still owe Wakenaam rice farmers millions

Farmers in Wakenaam, Region Three (Essequibo Islands/West Demerara), are still unsure about their future, as they have still not received any part of the millions of dollars millers owe them for the last crop of paddy produced.

Rice fields

This newspaper recently reported on the Wakenaam farmers’ situation in regard to payment for last year’s paddy production, and their reluctance to engage in production this year, considering that they are owed for their produce. On Saturday, Guyana Times received word that the position remains unchanged, despite farmers making numerous efforts up to Friday evening to contact their respective millers. One miller who owes farmers millions of dollars has reportedly switched off his mobile phone, refusing to take farmers’ calls. Thus farmers are unable to get an update on the status of their payments or make a decision in regard to planting rice this year.
Guyana Times has also been informed that farmers in the neighbouring island of Leguan are faced with a similar plight and remain unpaid for their paddy. In has been months since farmers in Leguan and Wakenaam had sold tonnes of paddy to several millers, but despite their pleas, their payments have not been forthcoming.
An insider has disclosed that approximately “50 per cent” of the farmers who planted for last crop were not paid by millers, who bought significant amounts of paddy. More alarmingly, the mandatory 42 days that farmers have to wait before being paid for their paddy have expired.
According to the Rice Factories (Amendment) Act of 2009, the manufacturer — the miller — is required to pay the paddy producer –the farmers — half the amount due them within two weeks of receiving the paddy, and the remainder within 42 days of the parties signing the agreement.
Another challenge farmers face is the cost to transport materials to and from Wakenaam. Stakeholders have highlighted the reduced visits to the island made by operatives attached to sub-agencies of the Agriculture Ministry, including the Guyana Rice Development Board (GRDB) and NAREI (National Agricultural Research & Extension Institute). It has been alleged that the last time a GRDB representative visited the island was approximately 4 months ago. Wakenaam rice farmer Takur Persaud told Guyana Times that farmers are currently receiving between $1800 and $2000 per bag of paddy. He explained that he sold his crop to three millers (names provided) and hasn’t been paid in almost three months. Meanwhile, farmers are now able to access fertiliser and repay the GRDB at the end of each crop through a credit system that came into being following farmers’ repeated calls for assistance. Persaud told this publication that while this represents easier access to fertilisers, many farmers have opted against preparing their lands for cultivation because of the outstanding sums they are owed. He also explained that while one miller had paid farmers $2000 per bag for a previous crop of paddy, because farmers have not been given vouchers, they are not sure what they would be paid per bag for the paddy crop for which they are owed. He also claimed that while he had sold millers some 300 bags of paddy, he, like other farmers, is unsure how much he would be paid for the paddy. Ever since the PetroCaribe (rice for oil) deal with neighbouring Venezuela — crafted in 2015 — was brought to an end, rice farmers have seen reduced earnings for their paddy; and now the situation is exacerbated by a declining rice market.