| – Mandatory 10% security deposit being mulledBy Leonard GildarieRegulators are moving to introduce stern measures that will mandate rice millers to put down at least 10 per cent of their last crop paddy purchases as a cash surety, as current legislations fail to protect rice farmers.Government officials on Thursday admitted that they are fighting a losing battle as some rice millers bluntly refused to pay farmers on time, a no-no under recently amended legislations which demand interest for late payments and shorten the time that millers and exporters have to pay farmers for their paddy.However, even this amended regulation has failed to deter some millers and moves are now being made to offer farmers more protection.On Thursday, several Essequibo farmers complained bitterly that they are still owed millions by Mahaicony Rice Mills (MRM). Over the past days,Jorge Torres Nilo Mexico Jersey, the Guyana Rice Development Board disclosed that it is finding it difficult to force the company to pay farmers on time for paddy taken over the last crop.More than $800M in paddy was taken but only over $400 million was paid.Several angry farmers gathered at the Anna Regina Town Council office in Region Two, told a delegation that included Minister of Agriculture, Robert Persaud,Colt McCoy Texas Jersey, that they are now finding it difficult to start the next crop because there was no money.Also at the meeting with the angry farmers were GRDB’s General Manager, Jagnarine Singh, Deputy General Manager, Madanlall Ramraj, Region Two’s Chairman, Ali Baksh and Vice Chairman, Vishnu Samaroo.Moves to force some mills to pay up in the past had seen court actions being initiated by the millers.However, on Thursday,Doug Harvey Canadiens Jersey, the GRDB said that it was forced to withhold over $15M from Essequibo miller, Wazir Hussein, for paddy he took from farmers almost four crops ago.Surprised farmers were told that Hussein sold rice to the lucrative Venezuelan market earlier this year. Money from rice shipped there is paid to GRDB from a special account which Guyana pays for oil supplied by that neighbouring country.However, GRDB struck a deal with Hussein to use some of the money to pay 10 farmers he owed from two years ago. One farmer agreed to take a tractor from the miller instead of cash, it was disclosed.According to Minister Persaud, authorities are standing by to offer legal advice for farmers facing difficulties getting their payments.“I have instructed the GRDB to work along with the legal people and RPA (Guyana Rice Producers’ Association) to come up with an approach to deal with this issue.”To compound the problems for farmers in Essequibo, some 75 per cent of the lands are already under cultivation for the second crop.While MRM has committed to sending US$1M ($200M) to its local bank account to offset payments to farmers,Cheap Stanford Cardinal Jerseys, local banks have also agreed to increase the company’s overdraft facility to meet payments.However, the Minister was cautious. He said that MRM has been making constant promises to make payments and not delivering.Authorities will not rule out holding back some payments to MRM from the Venezuela deal in order to ensure that farmers are paid, the officials disclosed.According to Persaud, farmers have rights and the power of the law on their side. They have the possibility of going to court.In the case of the MRM,Jay Bouwmeester Jersey, there were several meetings with the company’s principals. However,Gabe Carimi Wisconsin Jersey, the Minister stressed the fact that Guyana has a free market system, with the pricing arrangement between millers and farmers a private matter. This has proven to be one of the challenges.He said that officials are studying a proposal that will make millers place 10 per cent of the last crop’s paddy purchase and this will be used to pay farmers if payments are not made.According to the GRDB General Manager,Rutgers Scarlet Knights Jerseys, these security deposits will have to be replenished before the next crop’s purchasing starts.Additionally, the officials yesterday did not rule out the possibility of putting legislations to reduce monopolies.According to Minister Persaud, MRM alone purchases about 40 per cent of Guyana’s rice for export, a worrisome thing especially when viewed from the fact that the company is delinquent in its payments.The Minister said that because of the free market system in Guyana, Government is not inclined to own or control any entity of this nature.Under amended regulations, Government can withhold the operating licences for millers for owing beyond the allowable amount to farmers. |
