Mahaicony Rice Mills to be audited

-Minister Persaud

By Erika Haag-Tularam

Minister of Agriculture Robert Persaud has indicated that the Guyana Rice Development Board (GRDB) will be auditing all records of the Mahaicony Rice Mill; to ensure that farmers are not ripped off.

            The move by Government stemmed from the prevalent issue of paddy payment by the company towards farmers and millers.

 The Minister’s comments came while addressing media operatives recently on the progress of the rice sector.

            “The issue of paddy payment is of much concern to the Administration. One particular company, the Mahaicony rice mill is in fact stigmatizing and giving the exporting sector a bad name.”

            “We will be conducting an audit of the books to look at the records, to look at what the company is saying. But the company’s Bank has also assured us that sums are being repatriated in this regard for several payments,” he said.

            Thus far, the company has commenced payment but on a gradual level and the Agriculture Minister has been encouraging the company and other stakeholders to ensure that there are timely payments.

            The Administration has implemented various policies to propel the Agriculture sector. This has seen another amendment, the Rice Factories (Amendment) Bill 8/2010 tabled in the National Assembly on July 22.

            The Bill, which seeks to amend the Rice Factories Act of 1998, is aimed at toughening measures; to ensure early payment.

            “We have done early amendments but now we will be looking at a deposit to be made by these defaulting millers whereby the GRDB and the RPA can tap this deposit or this special fund so that they can provide farmers who are owed large sums outstanding.”

            The Bill according to Minister Persaud does not applies to all millers but the delinquent ones; stating that, “Those who have over the last three years defaulting on payments, are the ones who will have to make the deposit.”

            Subsection (1A) of the bill seeks to make provision for submitting a statement and a security deposit for payment of paddy; to be purchased along with an application for a licence as a manufacturer of rice.

            The security deposit may be utilized for the compliance of conditions, the fulfillment of obligations or the failure by the manufacturer to pay the value of paddy to any producer after the expiry of 60 days from the date of supply.

            The issue of dam preparation was also highlighted as it was pointed out that it is one of the most critical aspects; as it relates to harvesting. The Agriculture Minister has since written to the Local Government Minister and Regional Authorities, advising of the need for acceleration in this regard.

            This is to ensure that farmers have adequate access to transporting paddy from the field to mills.

            Meanwhile, General Secretary, Rice Producers Association, Dharamkumar Seeraj has opined that the late payment is deliberate.

            While referring to the unusual arrangement by the Company, which saw it investing US$140,000 in fertilizer for farmers, he emphasised that it was not their core business.

            In conclusion, the RPA, General Secretary said that the latter was a device to keep farmers bound to the company; and this will not be tolerated.

            In addition, farmers have already taken the management of the company to court for payment outstanding payments.