Georgetown: Although its rice trade is completely privatised, the United States Government can still assist Guyana by connecting local rice exporters with rice importers in the North American nation.
US Ambassador Perry Holloway explained that since the US Government was not involved in the rice trade within the country, it could not import/export rice.
“The US Government does not import any rice; the US Government does not export any rice…it’s not like the US Government can say we’ll buy (rice),” Ambassador Holloway stated.
Last year, Chargé d’Affaires of the United States Embassy in Guyana, Bryan Hunt said the rice sector in his country was most “certainly opened to Guyanese rice exporters”, and the Embassy would be willing to facilitate the process, should anyone become interested.
When questioned about progress on this development, Ambassador Holloway clarified that the Chargé d’Affaires was offering to assist in connecting Guyanese rice exporters with US rice importers.
Thereon, the traders will have to negotiate among themselves and arrive at an agreement.
Should an agreement be brokered between the two parties, Holloway explained that the US Government can then assist the Guyanese businessmen in becoming compliant with sanitary and phytosanitary legislation in order to export an agricultural product to the US.
“That’s all we can help with…the US Government buys rice from no one,” he reiterated.
Concerns within the rice industry began brewing at a rapid pace following the collapse of the PetroCaribe deal with Venezuela as rice farmers and millers alike began to worry about the future of the sector.
After Guyana lost the most lucrative rice exportation deal with the Spanish-speaking nation, the latter had begun importing rice from the US. The US recorded a notable increase in its rice shipments to Venezuela totalling 29,500 tonnes in August last.
Then in September, the US exported 30,000 tonnes of rice to Venezuela. Additionally, according to the US Department of Agriculture Foreign Agriculture Service Export Sales Report for October 2015, the US rice exporters have shipped 298,721 tonnes of rice to Venezuela.
During this timeframe, Guyanese rice farmers were faced with major difficulties since Venezuela no longer accepted shipments of rice as was arranged under the PetroCaribe deal.
Reports indicated that the rice farmers were still reeling from the devastating blow. It was reported that as a result of the collapse of the rice deal with Venezuela, coupled with other economic factors, Guyana lost approximately $11 billion in revenue last year.
Although the country’s rice exports increased by six per cent during the period January to October 2015 as compared with the corresponding period for the previous year, the earnings from the exports declined considerably.
In 2014, almost 30 per cent of the rice exported by Guyana went to Venezuela at above-world market prices.
This transition period has been challenging for rice farmers and millers across the country who are reportedly struggling to meet their various financial obligations.
Compounding the situation is the fact that Government neglected to allocate budgetary measures for the rice industry in its $230 billion National Budget for 2016.
When the parliamentary Opposition made an attempt to have a discussion on the matter in the National Assembly, the Speaker denied the request on the ground that rice was “not Government’s business”.
This move only sparked further outrage in the rice sector with stakeholders, including the former Agriculture Minister, Dr Leslie Ramsammy coming forth to prove to the public that rice was indeed Government’s business.
But the A Partnership for National Unity/Alliance For Change (APNU/AFC) Administration has taken a firm stance since ascension to office that rice belongs to the Private Sector and, therefore, Government will, like the United States, not get involved.
However, Government noted that it would similarly assist in securing rice markets by connecting rice exporters here with rice importers in other territories or by lobbying other Governments to import rice from Guyana.
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