| – GRDB encourages commencement of paddy purchasesA special meeting between top Guyana Rice Development Board (GRDB) officials and local millers, has left the latter unconvinced that things are looking up for the current “market crisis” that seems to be lingering in theSome of the millers exiting yesterday’s meeting with the GRDB.rice industry.The GRDB invited millers/exporters to the Agriculture Ministry’s Boardroom yesterday morning encouraging them to commence the purchase of paddy from farmers as the prospect of foreign rice markets “is coming on smoothly.”The meeting has however failed to comfort some millers,Jerseys NFL Wholesale, who say that despite encouraging paddy purchases, the Board has not given a solid commitment on which markets are available other than Venezuela. They say too that all millers are being encouraged to buy paddy, but according to the Board, a committee will have the say on whose rice would be selected for export.The media was not invited to this closed meeting, but Kaieteur News was told that paddy prices and rice shipments to Venezuela were among the issues discussed.Retired CEO of Alesie Rice Group, Dr. Turhane Doerga, who attended the meeting, said that millers are being encouraged to purchase the highest grade of paddy for just over $3000 and lower grades under that amount. He said that the GRDB representatives, including General Manager Jagnarine Singh and Deputy General Manager Madanlall Ramraj, ensured millers that the Venezuelan market is secure, with government signing the 2015 deal with the Spanish-speaking nation. Millers were told that rice to Venezuela would consume just around 30 percent of the production and top officials from the Board would form a committee “to decide who will get what quota of the Venezuelan market”.Doerga opined that this method leaves much room for the dishonest distribution of quotas, “to government cronies and PPP stalwarts.” Supported by another rice miller who declined to be named, Dorega said that the criterion for who gets these quotas “is a big secret, because President of the Rice Millers Association (Dr. Peter DeGroot) asked if rice millers could be a part of the committee and he was categorically denied.”“They are saying essentially, buy paddy from farmers and we will tell you whose rice we will accept. So millers might buy the rice and not get it sold. And that is exactly what happened with some millers still sitting on the paddy of last crop.”Doerga said that the Board went on to explain that it is only now that Guyana is being paid for one of the four rice contracts signed with Panama in 2014, “Yet they are asking millers (for this crop) to pay 95 percent of the value bought from the farmers, while the GRDB, who purchased the rice (to Panama), are yet to pay the millers.” And these millers would have bought the Panama shipped rice from farmers on the instructions of the GRDB.“So while the government is saying that it is the millers not paying, it is them who took over the market from the private sector and are not paying, so the millers cannot pay.”He continued that millers were also urged to buy paddy, but could not export it, so some millers were left in disarray to pay farmers.”Despite all the control and oversight,Wholesale Jerseys Free Shipping, Doerga said that the GRDB announced yesterday that, “garbage” was shipped to Venezuela and representatives from that country will now be visiting Guyana to personally inspect what is sent over.Deputy GM Ramraj told the meeting that Guyana was on the verge of not getting this year’s contract with Venezuela because of the bad quality of the commodity shipped. “Yet,” Doerga opined, “we are paying around US$5M to inspect paddy here.”The GRDB pointed to two new foreign markets; Poland in Europe and Iraq in the Middle East. But, “as a professional in the field, and internationally recognized I say that is hogwash which they are spurring just before election to fool people; just like how the Africa deal just disappeared,” Doerga argued.He reiterated that millers are basically encouraged to buy paddy, but are not shown the markets. The other miller opined that government wants to ensure purchases before May 1, “so the game is to fool people up to election time.”It was related that while millers found most of their markets in the past, the government is now the middleman conducting transactions on behalf of the industry. Dorega alleged that millers with independent foreign markets are being forced to give out information about their buyers. These buyers are subsequently lost when they are offered the commodity at a cheaper cost.“This is how they are controlling the market and effectively putting people out of business,NBA Store,” another miller interjected.Doerga posited that the industry is in a worse position than previously stated, because “a miller must be a mad man to buy paddy at high prices and not know who they are selling to.”On a $5.1B revolving fund for the industry, Doerga said millers are yet to be told the criteria for who gets the money, where it came from, and who would have received it. The millers said that authorities have also refused to say who are exporting to Venezuela.GRDB’s GM, Jagnarine Singh, explained to this publication yesterday that he could not speak on the revolving fund, since that is at the Ministry level, but opined that money is coming back to the fund for distribution, while pointing to returns from one of the four Panama contracts. He said that government has started to receive payment from that deal.In his bid to address some of the issues raised by Doerga and the other millers, Singh said that indeed Venezuela had complained about rice quality and a clause was incorporated in the contract for representatives to visit Guyana to inspect the rice.He confirmed too that Venezuela’s shipments will take up 30 percent of production and conditions have been set for millers to get into this shipment. These conditions include millers having to pay arrears to all farmers owed; they must have other markets, conform to the sixth schedule of the Rice Factories Act and adhere to the stipulated fee per bag of paddy among other rules.Singh said that four top members of the GRDB will be looking into qualified millers being a part of the shipment, but stated that it will be a collective effort since Dr. DeGroot from the Millers’ Association will be consulted. The GRDB head said that consultations with De Groot could also see another meeting with a smaller group of millers coming on stream soon, so as to get things off the ground.As it relates to markets,Throwback Jerseys, he confirmed the identification of the Polish and Iraqi markets. Rice samples are expected to go to Iraq, while further information is being sought by the Polish government. The African markets seem to be looking up too,Wholesale Authentic Jerseys Outlet, since all that is left is for officials to travel to the continent shortly to move forward with this market.Singh said the government services some 32 markets, but some of them take very small quantities of the commodity, and while the country expects record-breaking production this year,Wholesale NFL Jerseys, that would involve both private and other operators selling to markets.Singh opined however that Doerga seems to be a “bitter” businessman within the rice industry with his own agenda”. He described the persistently outspoken miller as being “a negative to the industry”. |
