Could affect second crop

Mahaicony Rice Mills (MRM) owes farmers just about US$10M (G$2B) and this could have dire implications for the second rice crop which is currently being sown, according to industry officials.

Speaking at a press conference at the Ministry of Agriculture’s boardroom yesterday, Agriculture Minister Robert Persaud said that farmers have reported limited sowing for the second rice crop due to the large sums owed to them by mills, particularly the MRM. He said that based on the Guyana Rice Development Board (GRDB) investigations, the mill had issued post-dated cheques to farmers for their padi and when they went to cash these, the cheques “bounced”.

The minister disclosed that MRM purchased 685,595 bags of padi worth US$18.6M from farmers. He said that about half of the farmers had not been paid.

General-Secretary of the Guyana Rice Producers Association (RPA), Dharamkumar Seeraj, in condemning the company’s actions, noted that there is a feeling that the farmers may not be able to complete sowing and expressed concern about meeting the target for the next crop. In Regions Five and Six, he said, sowing is at just about 35% of the projected targets.

In light of this, the ministry is engaging legal and other advice to prevent such a situation from recurring, Persaud said. It was noted that the action “has severe consequences for the entire rice industry.”

It was also disclosed at the press conference that MRM’s milling and export licence, which had been suspended was restored after there was no response to newspaper advertisements placed by the GRDB for farmers owed money by the mill to come forward, and also in compliance with a High Court order. Following the suspension of the licences by the GRDB, MRM had gone to the High Court on this matter.

Issue was also taken with an advertisement placed in yesterday’s Kaieteur News by MRM and while points raised in the ad were responded to, Persaud said that all that was required was for the farmers to be paid. “Just pay the farmers, that’s all we ask”, he stated.

However, in noting the non-payment of the farmers, it was argued that if this continues it would be a form of “economic sabotage”. It was further noted that issuing “bounced” cheques is an offence.