Following the announcement by Agriculture Minister Zulfikar Mustapha on Saturday that rice millers in Region Six (East Berbice-Corentyne) agreed that they would continue to pay farmers $65,000 for a tonne of paddy, millers on Sunday reduced the price to $62,000 per tonne.
On Saturday, Mustapha assured rice farmers that they will receive no less than $65,000 per tonne of paddy.
On Monday, farmers told this publication that hours after the Minister had made the announcement, the prices being offered were slashed by at least $3000 per tonne.
The farmers said that none of their paddy is graded as A+, hence, they will only receive a maximum of $61,000 per tonne.
This was confirmed by notices which millers are required by law to have, which publicly displays the price they are offering to farmers.
Suraj Ishwardiyal, who cultivates 300 acres between Number 65 and 66 Villages, said he received $65,000 per tonne on Sunday but when he took his paddy to Rayaadul Hakh Rice Industries he was offered $61,000 per tonne.
“They dropped the price from $65,000 for $61,000,” he told this publication as he presented documents to verify his claim.
Ishwardiyal added that when he went to the mill, he was expecting to be paid $65,000 per tonne.
“The Minister told us that we will be getting $65,000 per tonne and we held on that.”
He said for the crop he has already sold about 4000 bags of paddy.
Meanwhile, another rice farmer, Yado Hamman, who cultivates 200 acres at Number 64 Village, in explaining his experience and the impact the reduced price is having on him noted that farmers were using this crop to recover from losses they experienced during the last crop.
“We are hoping that the Minister can look into it and see how we can assist us because the Guyana Times has the Minister saying that the millers will hold the price at $65,000 per tonne but now we are getting $61,000 which is putting us on the breadline.”
Former Chairman of 52-74 Water Users Association Ahmad Rajab was supposed to commence harvesting last Monday and contacted one miller who promised him that he would be paid $70,000 per tonne.
However, subsequent rainfall prevented him from harvesting until Friday.
“I think sometime like about Wednesday the millers started offering $65,000 per tonne. I started getting $65,000 and I supplied Nand Persaud and yesterday morning (Sunday) when my driver went there, they told him that the price is $61,000. Prior to that, the Minister had some discussions with us in the Black Bush Polder and he assured us that he had talked to the millers who reassured him that the price will stabilise at $65,000. I am surprised that from Saturday when the Minister spoke with us to yesterday morning what changes took place.”
Farmers had taken to the streets in protest last week after millers slashed the price from $70,000 per tonne to $65,000 per tonne, forcing the intervention of the Agriculture Ministry.
According to Rajab, there are factors that should be explained to farmers which has resulted in the drastic reduction in the price millers are offering farmers for their paddy.
“What is happening within this short period of time for the price to drop like this? If you go into the supermarket the small sack of rice used to sell for $1300 now it is being sold for $2000. Even the by-product we use to buy the cone husk for $200 per bag and it is $800 now. We used to buy a bag of bran for $400 now it is $1200. These are things that need some answers,” he said.
Meanwhile, one miller who asked to remain anonymous said it is likely that the prices might be further reduced if the price on the world market remains the same. According to the miller, before the end of the crop paddy could be as low as $52,000 per tonne.
