Rice millers agree to pay $4000 per bag of paddy for 2023 first crop

…sales commission removed

Following recent calls by rice farmers for increased prices, millers across Guyana have agreed to pay at least $4000 per bag of paddy for the first crop of 2023.
This was finalised during a meeting on Saturday between the Guyana Rice Exporters and Millers Association (GREMA) and the Guyana Rice Development Board (GRDB). The engagement was facilitated by President Dr Irfaan Ali at State House, where Agriculture Minister Zulfikar Mustapha and Vice President Bharrat Jagdeo were also present.

“All millers will purchase farmers’ paddy for the first crop of 2023 at a minimum of $4000 per bag,” the Agriculture Ministry said in a statement.
It was also indicated that “The Sales Commission paid by millers and exporters for rice, by-products of rice and paddy is reduced to zero for the first crop of 2023.”
According to the Ministry, the representatives of both GREMA and GRDB signed onto the agreement brokered during Saturday morning’s engagement.
Over the past few weeks, rice farmers have been pushing for increased prices for paddy due to the rising cost of inputs such as fertilisers and losses due to weather conditions. Some farmers were paid $3500 for paddy at the last crop.
However, during an engagement with farmers in Region Two (Pomeroon-Supenaam) last month, Minister Zulfikar had promised to engage millers on increasing the paddy prices.

The Minister had stated at the meeting in Anna Regina that Government is aware several farmers suffered losses due to unfavourable weather patterns, and would be putting systems in place to ensure those farmers are given assistance to return to the land as soon as possible.
But the price of paddy for the current crop was a burning concern for many of the Region Two farmers.
“The main issue today seems to be the price for paddy. Only about 22,000 acres were planted in Region Two for this crop. I will be meeting with the Guyana Rice Millers’ Association… to see if farmers can get better prices for paddy, especially in Region Two. When that meeting is finished, I will communicate with the farmers,” Mustapha had reassured explained.

Across-the-board price
The Agriculture Minister had previously indicated that setting an across-the-board price for paddy from millers, something which the farmers had requested, cannot be done especially given that transportation cost plays a significant role in the price for paddy in certain regions.
“For instance, in Region Two, the price to transport will be more than in Region Five so in order for millers to earn they take those factors into consideration. You know for a fact last year we were able to negotiate with millers from Region Two for better prices for farmers and now you are getting up to $4000 per bag,” he told farmers from across the country during a meeting in February.
Nevertheless, at the Anna Regina meeting two weeks ago, Minister Mustapha had expressed his disappointment in the behaviour of some farmers, who walked out of the meeting before engaging the Minister. He reminded of the many interventions by the People’s Progressive Party/Civic Government to assist rice farmers after assuming office in August 2020 including the $1 billion assistance for fertiliser.
“Since we got back into Government, we’ve been trying our best. Many farmers right here on the Essequibo Coast received direct cash payments and seed paddy when we had the flood in 2021. Last crop when the price was low, farmers said that they were not happy and we intervened, and many farmers received $4000 per bag for paddy last crop. I am very shocked at this behaviour because when farmers were told rice was a private business, they never behaved in this manner. Now we are here to listen to you and work to find solutions to your issues a few are trying to disrupt the meeting. We have to be factual. I am here to listen to you to see how best we can resolve the issues,” the Minister said.
This move by the Government to bring relief to rice farmers comes on the heels of the industry recovering from poor performance under the previous APNU/AFC Government.
In fact, despite promising in its 2015 elections manifesto to raise paddy prices to $9000 per bag, the coalition regime disregarded rice farmers, with former President David Granger declaring in October 2015 that the transaction between farmers and millers is a private one.
“There are problems within the rice industry, which are not to be blamed on the Government. It’s a private enterprise largely… take a look at the internal dynamics of the industry and you will discover that it is a miller-farmer problem not a Government-rice problem,” the then Head of State had said.
Nevertheless, Minister Mustapha told rice farmers at the Anna Regina engagement that the Irfaan Ali-led PPP/C Administration continues to support the industry and rehabilitate critical infrastructure to improve access to transport their paddy from the fields.
“This year again, $25 million will be made available to rehabilitate dams in Region Two from the Ministry of Agriculture so that farmers can bring out their paddy. The Water Users Association has $10 million. The seed facility here; I’ve asked GRDB to refurbish it so that we can start producing seed paddy in time for the next crop. Some rice farmers gave me a list with a number of issues so that we can sit down as a team and go through them point by point. For instance, things like zero-rated on certain machinery and parts; there are still a number of spare parts that attract VAT because they are also used outside of the sector. We have to work with the GRA to deal with that,” Mustapha noted. (8)