New managers at Burma rice mill
By Nigel Williams
Stabroek News
May 5, 2003
Tandara Rice Inc. is now running the state-owned Mahaicony Abary Rice Development Scheme, better known as the Burma rice mill.
The arrangement was reached, according to a source close to the Guyana Rice Development Board, for the new management to operate the mill for one year which would include two crops after which the government would decide whether to continue with the arrangement.
Stabroek News was told that the agreement stipulated that only the drying, storage and milling facilities at the mill could be used by the new company and a rental would have to be paid for its use over the year. All of the other facilities at the mill would remain in the care of the government.
Prior to the renting of the mill, some of the workers at MARDS were laid off and paid severance. Those who have not yet received their severance were given commitments by the government.
However, this newspaper understands that it is likely that the government would resume operations at the mill after a year. "From what I see and read into it, is that the government is giving the management of MARDS a little time to get their act together, so that the mill can be more efficient and commercially-viable", a source said.
Several large rice farmers have said the move to put the mill into the hands of private businessmen was a good one.
One farmer had noted that over the past years, there had been numerous problems between farmers and the MARDS management, one being the untimely payment for paddy.
But General Secretary of the Guyana Rice Producers' Association, Dharamkumar Seeraj, said since its takeover Tandara Inc. has had its fair share of problems with rice farmers already. He foresees that one of the first challenges which is likely to face the new company is the problem of liquidity and according to him, this had already had an effect on the company. Reports reaching this newspaper state that similar problems which had confronted the old Burma Rice Mill are still evident and that a number of rice farmers are still awaiting payments for paddy sold to Tandara. Efforts to reach the company by phone failed.
According to Seeraj, because the supply of paddy is greater than demand at the rice mills, some millers had been using it to their advantage by deliberately paying farmers unreasonable prices. "I am of the strong view that many of these millers can do better, they can pay better prices, but they are capitalising on the situation to their advantage."
He said many of these same millers were in arrears to farmers and the RPA hoped to regulate planting next crop to avoid a recurrence of the present situation.
Moreover, Seeraj observed that the relationships between some farmers and millers were not good and the RPA would be working to maximize co-operation and minimise conflict. Seeraj remarked that it was depressing to know that even while rice prices on the international market had increased, farmers had not been getting the sort of returns for their crops.
Meanwhile, harvesting in regions, two, three and four has been completed and regions five and six are in the latter stages of reaping. Seeraj said paddy yields continued to be excellent this crop, noting that despite earlier setbacks during the planting stages, farmers had produced good crops.
