Dear Editor,
The rice industry continues to be a consistent contributor to real gross domestic product in Guyana, and 2013 is no exeption. In fact, 2013 production is the highest ever in one single year at over 500,000 tonnes from over 200,000 acres, the largest acreage sown. This was driven by lucrative prices from preferential markets, which have expanded the sector’s 2012 export earnings of US$196.2 million, second only to gold in terms of trade. It has been well supported by strong institutional and physical infrastructure, effective subsidies, good research and extension support and well maintained drainage and irrigation, among other ancillary services. The rice industry is far more mechanised than ever before from production to processing, and that has boosted its market value. In a country where most primary products dominate the productive base of GDP, the sector faces a number of challenges to enhance its value added potential. The commodity has also facilitated a cushion for a widening current account deficit over the years in a bilateral barter arrangement to withstand the effects of higher oil costs. This has enabled Guyoil to set a lower price for oil relative to that of their competitors.
In the near future the rice industry must ensure it does not suffer the same fortune as sugar, where production constraints plague the industry; thus it must be more competitive in order to optimize gains.
On the one hand while it is well known that the rice industry needs to find non-traditional markets, it’s pivotal to develop a Guyana brand of rice in order to tap into niche markets. Indeed the Caribbean offers a readily available market with low freight costs, but standard and quality of rice is paramount for any brand of rice to be marketed. Moreover, while new areas of land are touted as a way to increase production, improving existing yields per acre along with better varieties of rice offer opportunities.
On the other hand, the rice industry must be aware of over-capitalisation, higher cost of inputs and having adequate labour that is driven by good wages. It also needs to look at crop insurance.
One should not overlook the human capital base; an educated rice farmer or miller is a more informed individual in a better position to manage or make decisions about his or her own business.
Internationally rice has a bright outlook. The world demand is growing and more than half of the world depends on it to survive and this number is expected to grow in the future decades.
Yours faithfully,
M Ali
