Sod turned for $1.6B paddy drying and storage facility at Onderneeming

The Ministry of Agriculture today turned the sod for a $1.6 billion paddy drying and storage facility that will be constructed at Onderneeming, Region Two (Pomeroon-Supenaam).

The facility is being developed on 10 acres of land, with the footprint of the main structure occupying only part of the site. The remaining space will allow for future expansion should the need arise. The construction contract was awarded to 4N Hardware, while Superbrick, a European company, was contracted to provide the engineering, equipment and oversee its installation.

The new facility will have the capacity to process approximately 1,000 metric tonnes of paddy per day and provide 10,000 tonnes of storage capacity. It will include two dryers, four wet bins, receiving silos, conveyors, elevators, cleaners and a below-ground truck intake hopper. The storage system will also be equipped with temperature and carbon dioxide control systems to help preserve paddy over an extended period.

The facility will operate using a centralised SCADA system, allowing the equipment and operations to be monitored from a control room as well as remotely. The project is expected to be completed within one year, with the contractor expected to deliver the facility according to the agreed specifications and to the satisfaction of the Government and farmers.

Speaking at the sod-turning ceremony held at the project site, Agriculture Minister Zulfikar Mustapha said the new paddy drying and storage facility is expected to address some of the long-standing challenges faced by rice farmers on the Essequibo Coast, particularly limited storage capacity, delays at mills, and farmers having to accept lower prices for their paddy.

“We know for a fact that many times I come here, farmers always complain that Region Two farmers always receive the less price or the lowest price for paddy around the country,” Mustapha said.

He expressed hope that the completion of the facility would allow farmers to secure better prices while giving them greater control over when and where they sell their paddy.

“I am hoping after the construction of this body drying and storage facility that you will not only enjoy better prices but at the same time you will have the control of the market,” he said.

Mustapha said the storage facility is particularly important during the peak harvesting period, when existing storage and milling capacity in Region Two is insufficient to accommodate the volume of paddy being produced. Farmers, he noted, are often forced to take their paddy outside the region or wait for extended periods at mills to unload their produce.

“Many times you have to take your paddy outside of the region for sale and during the peak harvesting period, the capacity in this coast, the capacity in region two is insufficient to accommodate the value of paddy being produced,” he said.

He added that farmers have frequently complained about long lines at mills, with some having to wait up to two days to unload a single load of paddy.

“The line, you all know that many of you have called me directly, that when you go to the mills the line is long, you have to wait two days to unload one load of paddy. After the completion of this, I want to tell you that those things will be things of the past,” Mustapha said.

The Minister recalled that Government was previously forced to intervene when farmers were unable to find sufficient markets for their produce, purchasing approximately 70,000 bags of paddy to prevent farmers’ crops from spoiling.
He said the new facility will provide an alternative for farmers who may choose to store their paddy rather than sell immediately, allowing them to wait for more favourable market conditions.

“Either you take your paddy and sell it to the miller or bring your paddy here and store it if you don’t want to sell it,” Mustapha said.

He said the facility should therefore be viewed as more than a storage centre, describing it as the beginning of further agricultural development in the area.

“So the storage of rice is just one component of or one aspect of the development that will be taking place in this area,” he said.