Making the Rice Factories Act workable
Officials, farmers and millers complete final round of talks
By Chamanlall Naipaul
Guyana Chronicle
February 10, 2004
THE Guyana Rice Development Board (GRDB) in collaboration with the Guyana Rice Producers Association (RPA), farmers and millers completed, on Friday, the final round of consultations in an effort to make the Rice Factories Act “workable”.
Chief Executive Officer of the GRDB Mr Jagnarine Singh noted that four previous seminars were held in Regions Two (Pomeroon/Supenaam), Three (West Demerara/Essequibo Islands), Five (Demerara/Mahaica) and Six (East Berbice/Corentyne) to gather inputs from stakeholders in order to finalise the Act for implementation.
Speaking at the consultation, which was held at the Hotel Tower, Main Street, Minister of Fisheries, Crops and Livestock Mr Satyadeow Sawh, who is also holding the portfolio of Minister of Agriculture, said that the meeting is not one called “by chance”, but rather because of the desire of both the Private Sector and Government to work collectively to confront “head-on the challenges facing the Guyana rice industry”.
He commended the GRDB for the initiative especially given the context of 2004 being designated the ‘International Year of Rice’ by the United Nations Food and Agricultural Organisation (FAO).
“The challenges in the industry whether they are related to cultivation, processing or market access are a cause for great concern to the Government and we therefore agree that a frontal approach needs to be explored as we seek expeditious counter-measures to these challenges,” the Minister declared.
Mr Sawh contended that the seminar arose out of the many complaints received from both farmers and millers on issues relating to quality assessment and control, and implementation of the Rice factories Act.
He added that the rice industry is one of the most important sectors of the economy and it is the policy of the Government to work collaboratively to overcome the challenges and to explore the many opportunities that continue to grow out of the rice sector.
“We feel that this collaborative approach is one of the primary courses forward, if this industry is to continue earning foreign exchange, creating employment for thousands of rural households, generating many other spin-off industries, alleviating rural poverty and contributing to national food security,” Sawh exhorted.
He added that some degree of trust and goodwill must be shared between and among stakeholders in the rice industry if they indeed want the industry to be successful.
The Minister charged that for too long “the state-of-play in the industry is in dis-equilibrium and this Government, your Government, intends to pursue and support any initiative that brings a sense of relief and security to our farmers and millers, and also your buyers”.
He noted that the challenges posed by globalisation “whether they are internal or external, controllable or non-controllable, demand that we act decisively and put in place the necessary policy, legislative, administrative and other forms of support, all of which combine to increase our competitiveness and participation in the global marketplace”.
Sawh, however, cautioned that there are many “predators” both within and outside the industry waiting to prey on the innocence and trust of the stakeholders of the industry.
“Notwithstanding our openness, I would like to state explicitly that the Government will at no time, condone, engage or support any individual or entity in the rice sector that indulges in deceit and other reprehensible acts at the expense of the livelihoods of rice farmers and millers. Such transgressors would not be permitted in the industry,” Sawh assured.
Attorney-at-law and Speaker of the National Assembly Mr Ralph Ramkarran noted that generally the business community does not like regulations. However, he exhorted that the Rice Factories Act is designed for both the benefit of farmers and millers as well as the public.
He explained that it caters for licensing and operations of rice mills and penalties for being in the breach of the regulations.
Mr Ramkarran observed that in recent times one of the more contentious issues in various pieces of legislation has been the concern of the powers of Ministers. He explained that that in the case of the Rice Factories Act the power of the Minister is clearly defined, and that the stipulations in the Act must not been seen as an imposition because they are actually what constitutes the normal operations of a milling facility.
The Senior Counsel (SC) identified payment problems for paddy sold to millers as one of the burning problems in the rice industry, and stressed that the unfair treatment of people cannot be tolerated. He strongly supported penalties for those who do not pay, while conceding that payments involving international trade could become complex transactions.
In light of these difficulties, Mr Ramkarran advocated greater cooperation between farmers and millers in order for the rice industry to progress. He noted that the industry is owned by the country, and that negative transactions do not impact only on the industry, but also on the entire nation.
President of the Private Sector Commission (PSC) Dr. Peter DeGroot, who is also a rice miller, welcomed the initiative of the GRDB and noted that the Rice Factories Act will help to regularise the operations of rice mills, which in the past, operated in a “free for all” manner.
However, he observed that the Act would be as good as its enforcement and prosecution of offenders.
Dr. De Groot also cautioned stakeholders not to repeat the mistakes of the past, but to strive to do business with credible companies so that markets can be sustained.