GUYANA – New rice agreement signed with Venezuela

GEORGETOWN, Guyana, CMC – The Guyana government says it has signed a US$38 million agreement to provide rice to Venezuela.

A Government statement said that the agreement is the “largest ever signed” by the two governments and secured during President Bharrat Jagdeo’s recent visit to the neighbouring country in July.

The accord was nitially inked by Agriculture Minister Robert Persaud and Venezuela’s Minister of Food Production.
The shipment consisting of 50,000 tonnes of paddy and 20,000 tonnes of white rice and Persaud said shipments will commence in October.

“This whole arrangement represents a step by the Government in working with the partners and private sector to ensure that the industry continues to be viable and competitive notwithstanding the effects of the global financial crisis,” he said.

Persaud said that the agreement comes at a time when there is a continuing low price for rice on the international market and that Guyana has the capacity to fulfill marketing obligations to the Venezuelan market, as well as other markets within the Caribbean Community (CARICOM) and the United States.

“I want to make it very clear that this increase in market that we have been able to attract from Venezuela will not in any way endanger or reduce our supplies to other markets; but the Venezuelan market is indeed the most attractive one ever.”

He said that while market opportunities are important, the Jagdeo government has taken a decision to diversify the market base to ensure that farmers benefit from the best prices.

“The Government has undertaken to directly go out there and to seek market on behalf of the private sector. Although it was anticipated that the private sector should go out and seek markets, because of the importance of the rice industry we have gone out there and have sought this market of which I think is very significant,” the Minister said.

He said the government would be pursuing other markets within South and Central America and Persaud said that there has been a record increase for the first crop.

Comparing export figures for January to July this year with those of last year, Persaud said there has been a 22 per cent increase in export; while the value has also increased by 14.1 per cent.