Rice industry shocker! … Alesie walks away after 25 years
Mar 17, 2017 , http://www.kaieteurnewsonline....away-after-25-years/
By Brushell Blackman
After more than 25 years of operation locally, the Alesie Rice Group is closing its five mills and will cease doing business in Guyana. According to Board Chairman Turhane Doerga, the rice industry contributes half a billion annually to the government coffers, and with Alesie leaving the sector, Guyana stands to lose both monetarily as well as by way of influence.
According to Doerga, while the company had been operating with many constraints, recent developments have necessitated this move – not least of which is the lack of coherent policies, something that continues to plague the sector. The former Chief Executive Officer (CEO) of the rice group explained that after the last election it was hoped that the ruling administration would have advanced different policies from their predecessors.
Doerga said that the Peoples Progressive Party Civic (PPP/C) during its time in government marginalized and ostracized the group, and this was also a contributing factor. Doerga reflected that he was hopeful that the APNU+AFC coalition government would have made a difference in this regard. However, he is contending that the agriculture sector is in rapid decline and the Ministry of Agriculture is bereft of ideas to arrest the spiral.
Added to those setbacks, Doerga is contending that there is a worrying lack of policies by the government to address the issues that are affecting the industry. He is adamant that vital strategies are needed to guide the industry and persons that are involved in the selling of rice and paddy. The veteran rice miller opined that in the absence of policies it is unlikely that the rice industry will function the way it ought to.
A displeased Doerga said that an alleged cartel culture between selected rice millers and government is not helping the industry either. He said that at the moment there are chosen rice millers who seem to be having a greater say in the industry and special privileges are constantly being extended to them.
Doerga said that with all of those issues considered, it is no longer feasible for the Alesie Group to continue to ply their trade in Guyana. Further, he said that because Alesie is a fair trading company, at the least they are only allowed to pay rice farmers market price for paddy and with the current price, the company can no longer continue to do profitable business.
When contacted, Agriculture Minister Noel Holder said that he would not comment on the arguments advanced by Alesie for exiting the rice industry, but he would say that the government is working tirelessly to address a number of issues within the industry.
Alesie’s departure comes at a time when the government is actively looking to secure new markets for the rice industry. This development will put up to 300 persons out of work.
The rice mills that will be sold are Ruimzeight – with 32 silos, two dryers, a 16-ton mill and a newly-refurbished parboiled plant; Wakenaam, that currently has 12 silos; and facilities at Corriverton and Leguan.
The Alesie Group of Companies consists of a network of rice-mills, manufacturing and processing plants, commodity trading-brokerage firm and consulting engineering worldwide.