Is the Guyana Rice Development Board turning a corner?

LUCAS STOCK INDEX The LSI declined for the second week in a row with stocks of three companies trading this week. Republic Bank Limited (RBL) gained nearly two percent while Banks DIH lost 4 percent. Demerara Distillers Limited (DDL) recorded no change in price. As a result, the spread between the index and the risk-free Treasuries due to mature in December 2011 remained below 21 percentage points.

Rice and Sugar

Quite recently, Guyanese have been led to expect much from the rice industry.  Production has increased, exports have increased and even the number of destinations for Guyana’s rice has increased.   Revenues from this industry have also increased substantially that it now threatens to surpass sugar as the major agricultural product of Guyana.  With the exception of 2008, income from sugar cane production always exceeded that from rice.  Rice manufacturing also played second fiddle to sugar manufacturing.  Now that has been reversed.  While income from crop production lags behind that of sugar, income from rice growing has surpassed sugar and earns double that of the sweet tasting product.  With this type of performance by the industry, it is reasonable to inquire of the performance of one of the main economic agents responsible for the rice industry.  The entity is the Guyana Rice Development Board (GRDB).

Monopoly

The GRDB is a public corporation with broad powers to manage the rice industry.  In addition to developing the rice industry and promoting the expansion of export trade in rice, the