It is to benefit all rice farmers who owe various banks a principal of $10M or less as of August 2001 and those servicing their debts stand to be beneficiaries of the relief package announced last January 31, the Head of State and Government told a community meeting at Reliance, Essequibo Coast, during his recent visit to Region Two (Pomeroon/Supenaam).

Mr Jagdeo remarked that Government’s concern for the planters, who are facing great financial and other difficulties within the sector, led to the prolonged negotiations guided by the Financial Institutions Act, which, eventually bore fruit, earlier this year.

He said the deal provides for waivers on interest for non-performing loans with outstanding principals of $10M or less and for 25 per cent of the principal to be suspended and eventually written off over an agreed period, if the debt is being satisfactorily serviced.

Interest rate on the rescheduled loans will be calculated at a minimum of 10 per cent per annum, subject to the six-month average of the Treasury Bill and banks and their clients would decide the period over which the money is to be repaid, the Government Information Agency (GINA) said.

It reported that some 1,300 persons in the target group are indebted to a total of about $11 billion and that 1,200 of them, whose borrowings amount to approximately 20 per cent of the industry’s debt, will be relieved under the plan.

According to President Jagdeo, those who were servicing their loans prior to the announcement would see their interest rates cut by half and borrowings rescheduled over 10 years.

The indebtedness severely affected the state of the industry because there were distinct groupings involved, in terms of the level and nature of their individual debts and they found it difficult to obtain loans for either starting or resuming rice cultivation.

President Jagdeo encouraged continuation of rice growing, pledging that Government will do its part to further aid the sector.

He told the Essequibo gathering the Regional Administration is looking at ways to make more land available for farming, including for increased rice cultivation in Region Two to complement the more than 30,000 acres being planted now.

The President said Central Government is also working with the Regional Administration to alleviate many of the problems affecting the rice industry, among them the high cost of production, unavailability of places to dry and store paddy, pest infestation and crop damage caused by stray animals.

He pointed to the $15M seed paddy facility at Anna Regina, which will provide a central point for drying, cleaning and storing.

With funding from Canadian International Development Agency (CIDA) and Building Community Capacity Project (BCCP), the project is being executed by Partners in Rural Development, following RPA efforts to eliminate the expenditure, for transport, too and hassle associated with the process at various places.

The 100 feet by 42 feet structure will have a concrete drying floor, a seed cleaner and a storage bond.

Mr Jagdeo challenged the farmers to work at enhancing their relationship with the millers, saying a collective approach is necessary to overcome the hurdles in the rice industry.