Dear Editor,
Harvesting of the present rice crop has commenced in Region Two where farmers are making full use of the sunny weather. At the moment, we have seen a drop in the price paid for each grade of paddy, which poses a serious threat to the earning position of the farmers. This is a bold move by rice millers; it is not clear what is responsible for this drop in price, but it was reported that the millers were engaged in talks.
Over the past year, there has been a general decline in the paddy prices paid by all the millers. When margins were higher farmers expanded paddy production, however, recent changes in the price of paddy could sharply reduce production, more especially if the prices continue to decline.
These growing uncertainties and falling farm prices have alarmed farmers; the cost of production and the debt crisis have been unacceptably high for them. We therefore believe that the government and GRDB should not only retain the $4,000 per bag price, but also try to negotiate for higher prices. The analysis of farmers’ costs for fertilizers, insecticides, manual labourers, reaping, transportation, ploughing and land preparation, etc, indicate these are extremely high and farmers are not recovering their total costs.
The major strategies identified for Guyana to become more competitive in the rice export market are to improve the paddy value by 30% and increase the farmers’ returns in direct proportion to their increase in yield. Production of higher quality rice would also increase the returns to the rice industry. With increased attention to these factors, Guyana would be in a strong position to compete effectively in the Caribbean and other nearby markets.
Yours faithfully,
Mohamed Khan
