Dear Editor,
The US Department of Agriculture has reported that world supplies of rice have reached a 25-year low. It is so bad that the Philippines failed in its attempt to procure rice this week, a transaction that is usually straightforward.
The current average offer price for rice is now US$680 per tonne, 40% up on the January rates.
Why is this situation happening? Rice production has been outpaced by population growth for more than a decade in most of Asia. Eyeing dwindling stock, most Asian countries have placed restrictions on exports. Thus the amount of rice available for trade is reducing and becoming relatively thinner.
What is the impact for Guyana? We have to focus on and produce for our Caricom market. We have to stay the course since the US cannot afford in the medium term to continue to subsidise their rice farmers. Prices are increasing and this is good news for the farmers.
However, this is bad news for the local consumers and the initiative started by the Ministry of Agriculture and New GMC must be deepened to cut out the profit element of the middle man.
Yours faithfully,
Sasenarine Singh
