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Minister of Agriculture Robert Persaud (centre), flanked by General Manager, Guyana Rice Development Board (GRDB), Jagnarine Singh and General Secretary of the Rice Producers Association (RPA), Dharamkumar Seeraj while giving an update on rice sector

GEORGETOWN, Guyana (GINA) -- As the government of Guyana continues to make interventions to ensure that the rice industry remains productive, a new agreement has been secured with its neighbouring counterpart Venezuela.

The US$38 million agreement is the largest ever signed by the governments of Guyana and Venezuela, secured during President Bharrat Jagdeo’s recent visit to the neighbouring country in July. It was initially inked by Agriculture Minister Robert Persaud and Venezuela’s Minister of Food Production.

The shipment consisting of 50,000 tonnes of paddy at a cost of US$420 per tonne and 20,000 tonnes of white rice at US$700 per tonne, will bring much needed revenue to the industry. Shipments will commence in October.

Persaud indicated that the agreement comes at a time when there is a continuing low price for rice on the international market. He explained that white rice will attract 75 percent of current market prices, while paddy a 25-30 percent share, noting that if one can extrapolate from the prices, then it will be understood what such can do for the local industry.

He emphasised that Guyana has the capacity to fulfill marketing obligations to the Venezuelan market, as well as other markets within Caricom and the United States.

“I want to make it very clear that this increase in market that we have been able to attract from Venezuela will not in any way endanger or reduce our supplies to other markets; but the Venezuelan market is indeed the most attractive one ever.”

While pointing out that market opportunities are important, he said that originally marketing of rice and paddy was done by the private sector; but noted that due to Government recognising the importance of the industry, a decision was taken to diversify the market base to ensure that farmers benefit from the best prices.
Building on the momentum when the rice industry recorded its highest output in history in 2008, the Guyana Rice Development Board (GRDB), since its existence has been a facilitator in this regard and government plans to continue this trend by providing adequate support to the critical industry.

“The Government has undertaken to directly go out there and to seek market on behalf of the private sector. Although it was anticipated that the private sector should go out and seek markets, because of the importance of the rice industry we have gone out there and have sought this market of which I think is very significant,” the minister said.

The administration will also be pursuing other markets within South and Central America, according to the Agriculture Minister.

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