Guyana stands to gain more from the Venezuela rice and paddy deal following negotiations earlier this month between officials of the two countries.
According to reports, based on negotiated figures agreed to between Guyana Rice Development Board (GRDB) and Venezuelan officials, the deal which was valued at US$18.8 million has been revised to US$21.7 million.
Stabroek News understands that from the first week of April, paddy is expected to be shipped to the neighbouring country, and according to revised stipulations of the deal, the remaining 45 tonnes of the staple (10 tonnes rice and 35 tonnes paddy) will be shipped within a three-month period. The shipments leaving these shores will be subject to the availability of vessels, among other aspects agreed to between the two parties.
There were several hiccups before the initial shipment was sent to Venezuela including shipping arrangements and according to sources within the industry, a pest risk analysis which was carried out by the Venezuelan officials also contributed in the delay.
Chief Executive Officer of Alesie Group of Companies Dr Turhane Doerga told Stabroek News earlier this month that he was told by General Manager of the GRDB Jagnarine Singh that the last consignment which was shipped to Venezuela was infested with weevil and as a result had to be fumigated. Singh denied this and, according to a source, the paddy was kept on board the ship on arrival in the Bolivarian state and standard operating procedures in that country resulted in the fumigation.
Doerga stated too that the current El Nino dry weather phenomenon, which has affected several rice producing areas across the country, including areas in Region Three and Region Two, would have an impact on Guyana’s ability to supply the Vene-zuelan market. Sources within the GRDB told this newspaper yesterday that current storage quantities are sufficient to satisfy the required quantities of the deal.
According to reports, the team of officials which visited Venezuela, included General Secretary of the Guyana Rice Producers Association (GRPA) Dharamkumar Seeraj and several millers/exporters. They submitted a proposal to the authorities there on aspects of the deals which needed to be revised. The millers/exporters were also afforded opportunities to tour the rice milling operations of several companies in the neighbouring state, this newspaper understands.
On October 21 last year, in the presence of Agriculture Minister Robert Persaud, Head of the Corporation of Supplies and Services (CASA) of Venezuela Colonel Rudolpho Marco Torres and other officials of the GRDB, the multi–million dollar rice purchase contract for the supply of 50,000 tonnes of rice and paddy to the neighbouring state at a price higher than current export prices, was signed. Several weeks after the signing, Singh stated that it would have been difficult to meet the demands of the deal but he remained optimistic.
