Guyana has secured another rice deal with Venezuela, this time it is worth US$54.3 million.
Agriculture Minister Robert Persaud shaking hands with Venezuelan Ambassador to Guyana, Dario Morandy, after signing the new rice deal
Agriculture Minister Robert Persaud on Friday revealed that this contract will see Guyana supplying Venezuela with some 50,000 tonnes of paddy and 20,000 tonnes of white rice with immediate effect.
“We have to supply an additional 16,000 tonnes of white rice and 5000 tonnes of paddy (which are) remaining from the third contract … In totality, we are looking at 55,000 tonnes of paddy and 36,000 tonnes of white rice,” the minister stated.
Persaud reiterated that the initial agreements between Guyana and Venezuela were made possible by a meeting between President Bharrat Jagdeo and Venezuelan President Hugo Chávez. This trade agreement between the two countries has allowed for greater benefits to flow to the producers of rice in Guyana and the consumers of rice products in Venezuela. This effective bilateral trade agreement between the two countries has, over the years, allowed for improved political and economic relations between Guyana and its western neighbour.
The agriculture minister stated that harvesting for the present rice crop has commenced. Persaud explained that harvesting in Region Two is moving apace in the northern areas and to some extent in the southern sections as well.
Farmers have reported that they are reaping on average 20-25 bags per acre. The total amount of rice produced to date in 2011 is 249,239 metric tonnes. Meanwhile, the amount of rice produced for the second crop is 41,600 metric tonnes as at the end of September.
The agriculture minister explained that the Guyana Rice Development Board (GRDB) will continue to take all necessary initiatives to ensure that the local farmers, millers and exporters benefit from exporting rice to the various world markets. The rice output of Guyana for 2011 will surpass all levels previously achieved, as is evident from the first crop and the projected second crop, Persaud said.
This greater output will allow for improved economic benefits to flow to all stakeholders in the rice sector.
On the other hand, Persaud sought to describe what is happening relative to rice on the international market. This market has had an upward production revision for 2011/12, as reported in the global rice production forecast.
“The 2011/12 global rice production forecast was raised by 2.1 million tonnes during the month of September, to 458.4 million tonnes, led mostly by higher production forecasts for China and Brazil. Global rice production in 2011/12 is projected at a record, up (by) nearly two per cent,” Persaud stated.
Guyana has now inked three rice-related contracts with neighbouring Venezuela. The first contract saw Guyana exporting more than 40,000 metric tonnes of paddy at US$380 per metric tonne, and 10,000 metric tonnes of white rice at US$600 per metric tonne.
In the second contract, Guyana supplied Venezuela with 50,000 metric tonnes of paddy at US$420 per metric tonne, and 20,000 metric tonnes of white rice at US$700 per metric tonne.
This third contract would conclude with Guyana supplying 50,000 metric tonnes of paddy and 30,000 metric tonnes of white rice at US$800 per metric tonne of white rice.
