ACCORDING to the Guyana Rice Development Board (GRDB), rice production exceeded its targeted goal. Paddy yields were higher per acre and more sown acreage was harvested than during the same period last year. There was lower acreage prepared and harvested because of heavy rainfall. Indeed, the production of rice may have dropped a little, but not way off target. However, Guyana was able to more or less maintain its production of rice.

The reason why the rice industry seemed to have some sort of decline in the past few years, is not because the country was unable to meet its production capacity, but because of the lowered price on the world market.

The rice industry has not declined internally, but due to external effects example, drop in world price for rice, the revenues earned by the rice industry have decreased. So far, the Government has supported the rice industry in Guyana in various areas including finance, research and development, and drainage and irrigation, and it will continue to do so.

Research has been conducted at Mahaicony, East Coast Demerara in terms of experimenting to obtain greater and better yields. Government has also been very supportive in the drainage and irrigation in various areas.

The GRDB has noted that the rice industry in Guyana has been facing a lot of challenges in recent years. Many of the rice producers in Guyana have high levels of indebtedness to various commercial banks and are finding it difficult to service their loans. Between 1995 and 1997, a high price of US$450 per tonne was offered on the world market. Local producers thought that this was the ideal opportunity to expand, produce more, export more and gain more profits.

Unfortunately, the price offered by the European Union (EU) fell to US$210 per tonne. As a result, many producers are still heavily indebted in Guyana. Due to this change in price, competition has increased drastically around the world. However, while most of the developed and industralised countries (for example, the Asian Tigers, the US and Europe) were able to put mechanisms in place to cushion these effects, countries like ours find it difficult to do so.

Due to an increase in health consciousness around the globe, especially by people in North America and Europe, there have been changes in tastes and preferences. This has caused a decline in the demand for rice in various parts of the world.

But producers are still supplying on the same basis, resulting in excessive supply of rice in various parts of the world. Because of the excess, prices have dropped further and competition among producers has increased.

The problem of infrastructural impediments, such as an improper exporting systems and no deep-water harbour available to attract large vessels in Guyana, is also a growing concern. Poor electricity supply and inadequate telecommunications further delay the production process, which implies loss of time and money. Since 70 to 80 per cent of rice produced in Guyana is exported to supply markets overseas, changes in the world economy would have seriously affected our rice industry.

However, our outlook for the future seems positive in terms of our potential.

Guyana as a rice-producing nation has favourable climate, abundant land, adequate water supply, dedicated rice producers who are willing to remain in the rice industry and a Government that is committed to supporting the local farmers. (Government Information Agency)