From the doldrums … rice now boiling over
Written by Gina Webmasters, Published in News, A GINA Feature - March 1, 2015, Source - GINA
Rice is as very much inextricably a part of Guyana socio-cultural-economic history as is sugar, the symbol of the working class struggle. As a vital contributor to the national economy, it is the livelihood of over 150,000 Guyanese, comprising farmers of varying scales of production, and their support labour. The importance of rice is manifested by its growth and production-over tens of thousands of acres, in areas along the coastland.
Early boom
Rice, as an industry, became a formidable sector of the country’s economy, primarily because of the visionary foundation, established by that indomitable fighter for working class freedom, and late president of Guyana, Dr Cheddi Jagan, during the period of his 1957-64 administration. During this time, rice production expanded from 137,000 tonnes to 240,000 and also there were better yields (acreage turnover), as well as an increase in a better quality of rice.
President Donald Ramotar inspecting paddy and rice varieties at an open day held at Mahaica Mahaicony Abary
But these successes would not have been were it not for the large scale land reforms and the establishing of proper infrastructure. There was also the securing of the very profitable Cuban market, which at the time actually led to accusations that the then People’s Progressive Party/Civic (PPP/C) Government was having ties with the then Fidel Castro Communist Regime.
Proper management and expertise
The successful growth and development of the industry were due to the fact that persons, who were au fait with rice farming and the dynamics of the industry were responsible for its management and production, as exemplified by the composition of the Rice Marketing Board, the then governing authority for the industry, and the Rice Producers Association. In other words, rice was in the hands of persons who knew about rice; it was their business.
This seminal lesson however was lost when the People’s National Congress came to government in late 1964.
Industry tumbles
The industry had been professionally managed, in accordance with good agricultural practices, practical know how, and it had led to bountiful harvests in its pre-independence years. However, it was in a state of shocking and precipitous decline by the time the PPP/C had returned to office by 1992.
It was evident that the PNC Government perceived the industry through wholly political eyes, rather than continuing to ensure and support its prosperous growth and development, as had been the case, during the 1957-64 period of the Jagan Administration.
Stagnated
Its signalling intention began with replacing the GRMB with PNC party members. Other ominous signs included the reduction of rice prices paid to farmers, neglect of improving infrastructure (particularly drainage and irrigation and access roads), and an absence of land reforms.
And as Guyana gradually descended into the abyss of a dictatorship, with the inevitable socio-economic consequences such as foreign exchange shortage, much needed spare parts for the industry became a problem. The latter issue was even more compounded by the fact that the government had been the distributors for tractors, spare parts, fuel and fertilizer. Also government-owned mills were not prompt in paying rice farmers.
Loss of markets - farmers abandon industry
These serious instances gravely impacted on the industry, so much so, that by 1988, hectares under cultivation was 36,000, falling from a peak of 100,000 in 1964 under the then PPP Administration. A casualty of this destruction of one of the national economic planks was the failure to supply the rice quota to the CARICOM market and the EEC.
Thus by 1992, many rice farmers ‘had enough’ of an industry that became unproductive as well as uneconomical, for them to remain in, and whereas some migrated, others converted to mostly cash crop business.
Re-birth of rice
Fast forward twenty two years later, and rice as an industry has again risen to pre-eminence in Guyana, recording its highest level of production, since the beginning of its renaissance in 1992. Production figures for 2014 have been declared at an astounding 630,000 tonnes, a level of 95,000 tonnes more than 2013’s figure.
It is instructive to note that at the moment over 200,000 acres is under cultivation. In productive terms, this represents yields about 5.5 tonnes per hectare, in comparison with the 2-3 tonnes per acre, during the former PNC Government’s tenure in office.
Call this, yet, the finest hour for the industry, which now contributes approximately 13% of Guyana’s GDP.
Rice ready for harvesting
Gov’t wholehearted support
So what has been responsible for what is indeed the re-birth of this currently booming sector? Without any bugle sound of triumphalism, its resurgence proper commenced with the return to office of the PPP/C.
This historic event, a watershed in Guyana’s modern political history, signalled a renewed interest for those farmers, who had still continued to plant rice, and hoped for a change in fortunes. And in this regard, the government has led the way forward, contributing to the immense success of the industry.
Securing markets
Perhaps the most essential of government’s support for this important economic contributor, has been in securing markets for the farmers, and its astute management of the industry that has resulted in favourable market prices and dividends. There are now lucrative markets in Venezuela that account for a reported 58% of Guyana’s rice.
“Today, our market is made up of a diversified portfolio of export destinations. These destinations include a wider complement of European countries, all of the Caribbean countries, including Haiti, Venezuela, Brazil, Columbia, Panama, Belize, Nicaragua, Guatemala, and other countries. Small amounts are being shipped to the Middle East, Africa, the USA and Canada.
In 2015, we will add sizeable markets in other countries, particularly African countries. We are presently negotiating a supply of more than 70,000 tonnes to one African country. While we leave the private sector to service the market, the Government has been opening up these markets,” Agriculture Minister Dr Leslie Ramsammy said recently.
Rice being loaded for export
Proper drainage and irrigation; land reform
But no industry, such as rice, can progress to the levels of success as it has been in Guyana, without essential attention paid to cleaning and maintenance. To this end, new drainage and irrigation channels were established by the National Drainage and Irrigation Authority (NDIA), allied with much needed land reform through the Mahaica, Mahaicony, Abary/Agriculture Development Authority (MMA/ADA) and the Guyana Sugar Corporation. This important initiative has resulted in less loss during the rainy season.
New varieties
The twin factor science and technology has been an indispensable ally in the successful growth of the modern rice industry. This intervention, spearheaded by the scientific and technical staff of the industry has been responsible for the introduction of four high-yielding rice varieties in the past three years, under the management of the Guyana Rice Development Board (GRDB), which is responsible for the management of the rice industry.
Identified as the GRDB 9, 10, 11, 12, these new strains have found favour with rice farmers and now account for 60 percent of cultivation of new varieties. Their yields are as high as 60 bags per acre.With the new rice variety, the GRDB 14, now being introduced in the 2015 upcoming crop, it is expected that yields would increase even further. There is also the recent introduction of the aromatic variety, adding to the exponential production of rice.
Experimental plots of new rice varieties
Constraints
The industry has also surpassed for the first time 600,000 tonnes of actual production and 500,000 tonnes of actual export. The truism then that rice was too big to fail, is indisputably applicable to the national rice industry. Therefore, the return to government of the PPP/C can only be hailed as an act of providence. It redounded in rescuing the rice industry from the abject position of neglect and wholesale mismanagement that it suffered during the dictatorship era.
Though there are tremendous gains in the industry, in terms of production and productivity, President Donald Ramotar recently acknowledged that there are challenges with markets as with the same success comes challenges.
“We have to recognise that we are a small player on the international market, and we are price takers…and we don’t determine international prices, and therefore it means that we have to do things in order to make sure our viability, we have to do things more efficiently.”
Minister Ramsammy, speaking on limitations in the industry, stated that “…the major constraint in entering a competitive international trade regime is that these require waiting for payments. Our international trading partners have requirements that necessitate a waiting period for payments. This situation has created hardships for the industry that has resulted in millers and exporters not paying the farmers on time…the Government has not been on the sidelines, doing nothing. Indeed, even though the cultivation, milling and processing and export have been exclusively in the hands of the private sector, the PPP/C Government has intervened to facilitate the industry and reduce the impact of late payments.”
As illustrated above, the PPPC has been instrumental in providing farmers with the means to make their industry viable and prosperous. Never before, were rice production and export levels able to attain the magnificent numbers as are current. This has enabled the farmers and millers to replace old equipment and introduce new technologies.
This industry is now being managed by a well established GRDB, supported by a plethora of technical expertise and allied skills that have been instrumental in making this sector, the magnificence that it is. From all indication, the industry is expected to sustain its record achievements.
