Ramsammy calls for establishment of Agri Bank

Agriculture Minister, Dr Leslie Ramsammy is calling for the establishment of an Agriculture Development Bank as a step toward alleviating some of the financial issues in the agricultural sector.

The Minister, who was speaking at the launch of the Ministry’s 2013-2020 Strategic Plan for the agriculture sectors, said that within the strategy, there are provisions for the continued advocacy in the establishment of such a bank to meet the needs of the sector.

The strategy also seeks to advocate for the establishment of a revolving fund to serve the needs of the rice sector, in particular.

“The strategy we described has advocated for financial arrangements such as an Agriculture Development Bank, I think that is necessary, but that is a policy direction that the Ministry of Agriculture can advocate, but cannot do. We need a revolving fund arrangement. We need crop insurance, but these are easier said than done, because insurance implies premium payments and who will pay the premium… cause when things are going good, nobody wants to hear about a premium,” said Dr Ramsammy.

Recently, the Opposition parties, the A Partnership for National Unity (APNU) and the Alliance For Change (AFC) established the need for the development of an Agricultural Bank and a revolving fund to meet the needs of the rice sector.

The calls by the parties came after there were widespread protests by farmers over the inability of millers to pay them monies owed for paddy purchases. The farmers had contended that it was illegal for the millers to owe them monies for such extended periods.

But the Minister on Tuesday said the inability of the millers to pay can be attributed to the increased production in the sector. Over the last three years, Guyana has seen consecutive increases in the tonnage of rice being produced each crop.

Trouble

Dr Ramsammy said because of this increase in production, millers are now saddled with the responsibility or paying billions more to farmers at the end of each crop when they at times do not have the financing available.

However, the Minister maintained that the position of the Ministry is clear and farmers should be able to receive payments from the millers within the timeframe and under the conditions of the law.