Cost of inputs for rice farmers still too high

Dear Editor,

With the advent of the rains, sowing for the second crop has commenced in Region 2, Pomeroon/Supenaam.

It is anticipated that all the 32,800 acres will be sown for the second crop of 2008. According to the General Secretary of the Guyana Rice Producer’s Association (GRPA) Mr Dharamkumar Seeraj and Minister of Agriculture Robert Persaud (‘Guyana sets out to break “Mafia-type” stranglehold as fertilizer price soars locally’ KN, 31.5.08), a task force was  assembled to tackle the high price of fertilizers and ensure adequate supplies to the local market. Rice farmers in region 2 are still paying $10,000 for a bag of fertilizer (50 kg = 110 lbs) for this second crop. A detailed check at all the local entities has confirmed that the importers and distributors are still taking advantage of the situation by unjustifiably driving up prices despite government slashing the taxes and duties on fertilizers.

There are many challenges facing the rice farmers in Guyana and the region as a whole. Rice contributes significantly to the gross domestic product of the country and is also a major employer; the government should immediately put the task force to work. Farmers are having many sleepless nights when they sow their crops and many live in fear, not knowing what would be the outcome before harvesting.

The rice industry at this time is enjoying some good prices while global consumption is exceeding production, but the cost of inputs is still too high for farmers, including for fertilizers, ploughing, reaping, sowing, insecticides, bags, twine, seed padi, etc. The analysis of the industry costs also indicated that many small rice farmers were at least breaking even. By definition small rice farmers are vulnerable; many are unsophisticated and unable to represent themselves effectively, therefore the task force is necessary to monitor the weight and the present price for fertilizers in all rice-growing regions. The European Union should give the RPA a revolving fund to buy fertilizers since the organization has already demonstrated its ability to competently manage the revolving fund granted by Oxfam to facilitate competitiveness in seed-padi production. There was a hundred per cent success rate in terms of implementation and returns.

The farmers should be supported by huge subsidies. In the developed world – in particular in Europe and the United States – subsidies are given to boost production and encourage small and big farmers to work the land.

Yours faithfully,
Mohamed Khan