Purchaser of Mahaicony Rice Mills obligated to pay 48 rice farmers

Dear Editor,

I wish to apprise you of a situation following the selling out of the Mahaicony Rice Mills Ltd (MRL) at Vilvoorden, Essequibo Coast, as farmers are gearing up for harvesting the Spring crop. Over the past three years, there has been a general decline in payment for paddy purchased by this rice mill. Pursuant to the sales agreement of this mill and subject to the representations by Guyana Rice Development Board (GRDB) on behalf of 48 rice farmers, warranties, covenants and specified terms and conditions were included in the agreement, and the property was transferred to the purchaser.

The Regional Chairman of the region held a meeting in the regional boardroom of the RDC on February 15, 2013.The main objective was to inform the 48 rice farmers about their outstanding payments which were to be paid by the  new owner within two weeks. In accordance with the agreement the said sum may be recovered, without prejudice to any other remedy the government may have in respect of the purchaser.

However, the farmers were surprised that the Guyana Rice Producer’s Association (GRPA) was not invited to these forums to represent their interests, since it has been in the vanguard of their struggle for a fair deal since colonial rule. Considering the critical nature of the current situation, it will be necessary for the GRPA to lobby the new owner to protect the interest of our rice producers. This could be expedited and supported by monitoring how the payments to the 48 rice farmers are released for paddy supplied since 2010.

Yours faithfully,
Mohamed Khan