THE Ministry of Agriculture has moved towards stabilising the price and supply of rice on the local market and in this regard yesterday announced an adjustment of the export commission on rice to cushion the effects of the rising price for the commodity and to enhance the operations of the Guyana Rice Development Board (GRDB).
Agriculture Minister, Robert Persaud, told reporters at a press briefing convened at his Ministry that the changes are as follow:
* export of bulk cargo rice has now moved from US $ 6 to US $ 10 per tonne;
* export of bulk polished white rice from US $ 6 to US $ 9 per tonne;
* export of packaged rice (10 kilos package and below) from US $ 6 to US $ 8 per tonne and ;
* export of broken rice from US $ 2 to US $ 5 per tonne
He pointed out adjustment was made under section 45.2 of the GRDB Act which states that the board may with the approval of the minister, charge fees for certifying the quantity, quality or both of any quantity of rice under sub-section (1).
Persaud noted that the existing export commission was charged when the average export price for rice was about US $ 250 per tonne but presently the average export of the commodity has jumped to around US $ 650.
The minister disclosed that the measure will take effect today and will apply to all contracts and export arrangements for this crop. The rate of the commission will be reviewed at the end of this crop.
He explained it will allow for the restructuring and modernising the GRDB operation; the improvement of its capacity for trade and industry development; better extension service to farmers to improve yield, quality of seed material and adequate research support.
Persaud said the adjustment would not affect the price of paddy for farmers and may further ensure that the local market is adequately served at an affordable price.
Rice levy are charged in many countries with the most recent being Pakistan. China also has export taxes ranging from 5 to 25 per cent on food grains with process rice alone fetching a 10 percent charge. Australia, apart from its export taxes, has a 2 per cent interest on late payment.
No ban on rice export
The minister declared contrary to speculations, government has not implemented a ban on rice exports, but has restricted the sales to ensure adequate supply for local consumption and export. He said exporters and millers have pledged their commitment to the process.
However, he revealed that the export of rice bran has been banned and export for broken rice has been confined to 10,000 tonnes to allow for adequate supply to the local feed industry.
The Ministry through the GRDB has concentrated focus on increasing production on this crop to maintain exports to local markets.
Government is monitoring closely the supplies and exports of the commodity to make sure there is enough for the local market.
Persaud pointed out that the New Guyana Marketing Corporation (GMC) soon will extend its price buster campaign targeting several communities to not only ensure ample supply but to maintain stability in price.
Meanwhile, harvesting in Region 2 (Pomeroon/ Supernaam) is some 83 per cent complete; Region 3 (Essequibo Island/West Demerara) about 50 percent; Region 4 ( Demerara/ Mahaica) close to 80 per cent; Region 5 ( Mahaica/ Berbice) 20 per cent and Region 6 around 30 per cent.
The minister stated that the delay in Regions 5 and 6 is due to the unfriendly weather but the process is expected to be in full swing in another three weeks.
He disclosed also that rice exports for this year are expected to be 271,000 tonnes as against 269, 000 tonnes last year.
Globally rice stock has fallen to its lowest in 30 years less than half of where it stood in 2000 0- prompting the United Nations (UN) to warn of millions facing starvation.
The average prices for rice have doubled over the past five years and have reached its highest in 20 years this month.
The price of medium-grade Thai rice, a market benchmark, has skyrocketed from $ US $ 360 a metric tonne at the end of 2007, to US $ 795 last week, and is expected to hit US $ 850 this week and US $ 1000 over the next three months.
Cambodia has joined Vietnam, India and Egypt in curbing their export of rice, fearing that they would not have enough to feed their own population. They blamed the recent rice price on the surging demand in Africa and the Middle East.
In addition, Thailand, the world’s top rice exporter, rice farmers are hiring guards to protect their crops from bandits. Over 90 per cent of the country’s crop is now used for local consumption.
GPL to save US$5M annually from new projects
- Brassington says projects will ensure reliable power supply until hydro can come on stream
THE Guyana Power and Light Company (GPL) will save in excess of US$5M annually from the three new electricity projects coming on stream, Chairman Mr. Winston Brassington said yesterday.
The projects, costing some US$30M altogether, entail the setting up of a state of the art 20MW power station at Kingston, running a new 69KV transmission line linking the new Skeldon factory to GPL’s power station at No.53 Village (Corentyne), and the rehabilitation and conversion of the engines at the Canefield Power Station to heavy fuel oil operations.
Brassington said the three projects will allow GPL to improve the reliability of electricity transmission and also reduce its cost of operation, since the new Kingston plant will also operate on heavy fuel oil.
He said the investments are also expected to ensure a reliable level of power until hydro power can be obtained.
In this regard, engineering, procurement and construction bids of the hydro and the transmission line to Sophia, Georgetown, are expected to be received by the sponsors of the Amalia Falls project by September this year.
He said the project sponsors now include Sithe Global of New York, a company that has experience in constructing and financing large hydro projects. Sithe Global is currently the key shareholders in a 250 MW hydro project underway in Uganda.
“GPL projects that by the end of 2011, the hydro project should be on-line,” Brassington said.
Spending for the new projects which were announced a few weeks ago by Cabinet Secretary Dr Roger Luncheon, comes from government’s 2008 allocation to GPL of $4B, Brassington told reporters at GPL’s Middle street, Georgetown office.
Prime Minister Mr. Samuel Hinds, who has responsibility for the electricity sector, said the government remains committed to the upgrade of the power sector.
When the new projects are completed next year, Brassington said GPL will be generating over 95% of its electricity using heavy fuel oil as against the more expensive diesel.
At today’s prices, he said, heavy fuel oil sells for US$70-US$80 per barrel, versus diesel at US$130-US$140.
Mr. Brassington said GPL continues to be challenged by rising fuel costs but is taking all measures to avoid increasing tariffs beyond the 15% increase implemented at the start of the year.
GPL has budgeted to spend US$85M on fuel this year, a comparative amount to the total revenue it collected last year.
&Con should note that GPL’s financial position continues to be challenged by rising oil prices, and consumers are encouraged to pay their bills on time and to conserve on their use of electricity,” Brassington stated.
Brassington said the company’s conservation programme has borne fruit, with some consumers using less electricity. This has resulted in a reduction of the regular peak demand; and by extension, this has resulted in a reduction of diesel generation.
these new capital projects coming on stream, Guyana can expect a more stable and reliable supply of electricity from GPL,” he said.
Government of Guyana is indeed very pleased with these recent developments and will remain committed to further enhancement and development of the power sector,” Prime Minister Hinds stated.