Government should not be the first option to bail out rice millers

Dear Editor,

We welcome the payment for rice farmers in Region Two which will bring much benefit to the farmers and their families, and advance the country’s welfare. Allow me to turn my attention to as very topical problem, and that is the question of government bailing out a private rice miller to pay rice farmers from the coffers. As far as I can remember, this particular rice miller has been owing farmers for decades; on many occasions I had to represent rice farmers at this mill to get their money.

Lest I be misunderstood, let me say clearly that I am not against the rice farmers of Region Two receiving their monies in principle, but I do not believe that government should in every instance be the first and only option to bail out rice millers when there is an EU Financial Facility Fund of $1657.5 million or €6.5 million at GBTI for rice millers for revolving loans. But here we are speaking of using taxpayers’ money which was built up by generations of Guyanese.

It is prudent to draw your attention to the recent revelation by millers that they are engaged in high price-fixing for rice and paddy on overseas markets, and have admitted that rice farmers are playing a crucial role in production and the economy. The farmers have thus been calling on the government to reintroduce subsidies on fertilizers, insecticides, seed paddy, fuel, machinery and agricultural tools and equipment which will increase the income of small rice farmers and result in an improvement in their quality of life.

The government should set up small or medium-size rice mills and dryers in the old GPL compound at Anna Regina which will make the farmers independent and result in competition in the free market system.

This will help ease the suffering of the farmers and subsequently result in an increase in the prices offered by millers for their paddy. I believe this is one way forward. We hear over and over that the world is becoming more interdependent.

Much talk is going on about the global economy. Millers do not allow differences to affect their profits. By way of conclusion, Editor, allow me to extend my solidarity to all the rice farmers who are defending their rights so they can receive their last crop paddy payment.

 

Yours faithfully,
Mohamed Khan