Rice output to decline further
Only 65% of acreage likely to be planted
By Andrew Richards
Stabroek News
July 29, 2002
Rice production is expected to dip further this crop following a 20% drop for the last crop due to the fickle weather and this would make it a relatively poor year for the industry.
And rice farmers are still experiencing difficulties in getting their loans rescheduled at the banks even though an agreement was reached with the government on this.
So far for this crop, only 42,000 hectares of the 82,000 hectares available has been cultivated and it is already well into the season. It is estimated that only 65% of the land available will eventually be planted.
General Secretary of the Guyana Rice Producers Association (GRPA), Dharamkumar Seeraj, told Stabroek News on Friday that the process at the banks in dealing with the debt rescheduling was slow and tedious, but he said it was understandably so in some cases.
He stated that one of the problems was that a lot of the farmers were finding it difficult to meet the bank requirements in time to have their loans rescheduled such as insurance policies, re-valuation of assets, and additional security.
Seeraj said the banks were demanding that the borrowers consent to the court judgements handed down before the agreement was reached, before the implementation of the restructuring of the loans.
The restructuring involves the suspension of 25% of the principal, a write-off of interest accrued, and the rescheduling of the balance at a rate of 10% per annum for a period not exceeding ten years.
This arrangement is for the smaller farmers whose outstanding principal is no more than $10 million.
Some 1,200 rice farmers with principals below $10 million account for 11% of the $12 billion rice debt.
Seeraj said the GRPA is still pushing for the larger borrowers to submit a proposal to the banks on how they intend to address their indebtedness.
He said the big borrowers could seek concessions but they would have to put up a repayment plan in keeping with the announcement made by government. He noted that government had provided a no-tax incentive for banks for loans that are restructured.
Seeraj pointed out that the agreement reached with the banks was not across the board as there were questions as to how some of the large borrowers had utilised their loans.
Seeraj added that the current crop has also been affected by paddy bug infestation and $5 million has been set aside for the purchase of chemicals to address this.
The GRPA is conducting a joint programme with the Guyana Rice Development Board to supply the farmers in the affected area with monocrotophos at a subsidised price.
Seeraj noted that the funds were only enough to cover 17,000 acres for a single spraying so the money recovered from the sales would be used to purchase more chemicals.
Already 3,000 litres have been distributed in Region Two (Pomeroon/Supenaan), 1,600 litres in Region Three (Essequibo Islands/West Demerara), 500 litres in Region Four (Demerara/Mahaica) and 500 litres in Region Six (East Berbice/Corentyne). More chemicals will be distributed in the coming weeks.
Seeraj said drainage continues to be a problem for the rice farmers, especially in Region Five (Mahaica/East Berbice), and Region Six at Black Bush Polder.
He said because of this, 50% of the available land has not been cultivated due to the high water in those areas.
The non-opening of the drainage sluices at night when there is low tide contributes to the problem and Seeraj said the regional administration under which the operators fall should do a lot more to correct the situation.
Meanwhile, the GRPA would be moving its headquarters to Region Three and will strengthen its offices in Regions Five and Six.
The facility in Region Three will be used to produce seed paddy and would have a storage area. Seeraj noted that 500,000 more acres of land would become available when the second phase of the Mahaica/Mahaicony/Abary project comes on stream.
The GRPA would be gearing itself to meet the demands which would emerge with the increased acreage.