Georgetown: With the collapse of the PetroCaribe Agreement between the rivaling states of Venezuela and Guyana, the latter is now left to seek alternative markets for its bumper harvest.
Chairman of the Guyana Millers and Exporters Marketing Association Dr Peter De Groot however, asserted that the international prices for rice is almost half the price Venezuela was offering Guyana and, therefore, if Guyana is forced to depend on alternative markets, then the rice industry may very well suffer.
The PetroCaribe deal, which was sealed by the previous People’s Progressive Party/Civic (PPP/C) Government with the Bolivarian Republic of Venezuela several years ago, saw Guyana receiving oil in exchange for rice.
The agreement was schedule to come to an end in November 2015 and the Guyana Government was trying to have the arrangement extended, however to no avail.
Finance Minister Winston Jordan, after returning from a PetroCaribe Ministerial Council Meeting, reported that Venezuelan authorities indicated that the contract will not be reviewed. He noted that this was as a result of the fact that Venezuela would be taking rice from Suriname and as such, did not require the large amount which was currently being sent from Guyana.
Though the tension between the two nations is progressively intensifying, DeGroot disclosed that officials from Guyana are currently engaging those in Venezuela with the hopes of salvaging the rice deal so that farmers and millers can continue to benefit.
However, Guyana and Venezuela are presently involved in a century-old border dispute that is getting worse as the day goes by. Already, it is reported that oil-rich country intends to pass a legislation to make Essequibo into a State of the Bolivarian Republic of Venezuela.
While very cognisant of this, DeGroot maintained that Venezuela offered a price that was no match to the world’s market and it is against this backdrop that the Government will continue to negotiate with Venezuela to renew the PetroCaribe Agreement.
Businessman Beni Sankar had explained that Guyana only exports roughly 75 per cent of its rice production, while the rest is being locally utilised. Of that 75 per cent exported, only some 40 per cent is going to Venezuela. Sankar pointed out that the problem with some farmers is that they are asking for prices based on Venezuelan price, which is not possible because Venezuela offers an exceedingly higher price than other countries.
Meanwhile, when asked what will be the fate of the rice industry should the rice deal with Venezuela fail to be restored, DeGroot assured that the association is currently trying to secure other markets in Europe and within the Caribbean. He noted that Guyana already exports rice to Jamaica and Panama and will continue to do so when the second crop is harvested.
Moreover, it was previously reported that a high-level team, inclusive of representatives from the Guyana Millers and Exporters Marketing Association, is expected to visit the Spanish-speaking country shortly to discuss the way forward for the supply of commodities in exchange for oil under the PetroCaribe Agreement.
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