Increases in international prices for rice are now trickling down to farmers who should be seeing $1400 to $1650 per bag of paddy for this crop.
But Dharamkumar Seeraj, general secretary of the Guyana Rice Producers Association says there are still issues of late payments and he cites Alesie Guyana as still owing some farmers for the last crop. He also says Pandora Rice Company has failed to honour debts despite a court order to do so.
Attempts to call these companies for a comment were unsuccessful.
Part of the price increase could come about from a smaller harvest due to a prolonged rainy season which hampered re-planting after the last crop. A slight increase in productivity is expected but a shortfall by 20,000 hectares is also expected mostly in Regions Five and Six. This means millers will be competing for supplies in these regions.
Officials from Nand Persaud Company Ltd., in Berbice noted that they are currently buying a 143-pound bag of paddy at $1,400 and say deductions are not being made for moisture. The company is even sending a truck to pick up the supplies.
For this crop, Seeraj says the quality of rice will be very good. Harvesting is currently ongoing in Regions Two, Three, Four and Six. So far, the rains have held off.
Any further increases in prices are dependent on the weather conditions in other rice producing countries, say experts.
But even with the better prices millers are not making large investments as many are still struggling with debt from the boom years of the 1990s.
Brandon Barton, of Mahaicony Rice Ltd., says too many millers have burnt their fingers in the past and are wary of taking on large loans.
Seeraj agrees that the industry has still not fully recovered from the financial troubles. Both millers and farmers got burnt, he notes, and will now be more cautious.