Rice sector growing despite MRL woes – Seeraj

Despite ‘hostile’ weather conditions and other constraints during this year, the rice industry has ‘weathered the storm’ and will still gain record increase in production and exports. While a significant number of farmers across the industry are still owed large sums of money for paddy, the impact of disrupted operations of Mahaicony Rice Limited (MRL) on the entire industry has been minimal.

This is according to General Secretary of the Guyana Rice Producers’ Association (GRPA), Dharamkumar Seeraj.

MRL, one of the largest players in the industry, has operated at limited capacity towards the end of this year, since it still owes farmers over $200 million in paddy payments. At the beginning of the second crop of 2010, there were concerns about the impact of MRL’s limited operations on the industry.

However, Seeraj has reported that the recent rice crop has been staggered and there have been no problems with the other mills taking off the paddy.

In fact, he said, most of the local mills have upgraded their storage and drying capacities, and have been able to easily take off farmers’ paddy without there being any long lines at the facilities.

Also, he stated, farmers enjoyed better competition and favourable prices comparable to the last crop, since the cultivation was spread out. This year, he added, would be a better year for rice production and exports because of the Venezuela rice trade, while some stocks from last year were also brought forward into 2010.

While noting these strides, the rice farmers’ representative continued to express concern about MRL’s delayed payments to farmers; but, even more, the company’s apparent silence on this issue. Noting that the RPA has not been getting any recent updates from MRL, Seeraj stated, “We have given up!” He indicated that the association was still proceeding with ‘class action’ against the company on behalf of the scores of farmers owed. The GRPA is still collecting necessary information for the legal move, while still hoping that MRL would move forward and pay the farmers.

Further, lamenting the delayed payment issue, Seeraj said farmers look forward to the debate and hopeful passing of further amendments to the Rice Factories Act in the National Assembly, which he is confident would help to protect farmers against such situations in the future.

In the meantime, the Guyana Rice Development Board (GRDB) has also continued to express concern about the extensive delay in settling farmers’ paddy payments.

An official told this newspaper that, “MRL has just been making big promises.” The official explained that, although MRL has been making some payments to farmers, those payments have been so limited that the total amount owed by the company remains almost the same. 

When asked about the audit of MRL’s financial records, which GRDB had moved to carry out, the official said the police are still dealing with the matter, since MRL has denied GRDB access to its information. 

The United Nations Food and Agriculture Organization (FAO) recently reported that, based on rice produced over the 2010 season, world rice utilisation in 2010-2011 is forecast to expand by two per cent to 460 million tonnes (milled basis), sustained by increasing rice consumption as food to close to 393 million tonnes.

Based on current expectations for the 2010 paddy season, world stocks at the close of the 2010-2011 marketing years may rise by five per cent to 136.2 million tonnes, the highest since 2002.