US rice company wants to invest in Guyana

A new proposed paddy agreement involving Guyana and Suriname would maintain their traditional market share for rice in Jamaica. Moreover, paddy sourced from within the region has to be discounted from the 65,000 metric tonnes import waiver granted to Jamaica. Meanwhile, US-based Archer Daniel Midland (ADM), the largest importer of rice into Jamaica and one of the largest grain traders worldwide, imported over 4,000 metric tonnes of white rice from Georgetown last month and Guyana is expected to export another 18,000 metric tonnes next month. The company is also interested in investing in Guyana. Minister of Foreign Trade and International Cooperation, Clement Rohee made these announcements at a recent press conference at Guyana’s Ministry of Foreign Affairs.

And inspite of complaints about the loss of the European rice market, Guyana Rice Development Board Chairman, Jagnarine Singh said that current demands are greater than local production at present. The new paddy agreement was reached at a meeting between the Ministers of Foreign Trade of Guyana, Jamaica and Suriname and their delegations at a meeting held in Kingston, Jamaica in early August. Guyana was represented by Rohee, Guyana Rice Development Board (GRDB) General Manager Jagnarine Singh and GRDB Marketing Manager Nigel Dharamlall. Suriname was represented by a seven-member delegation. Also represented were the CARICOM Secretariat and Jamaica. The meeting was in keeping with a mandate by the CARICOM Heads of Government at their last summit in Jamaica to resolve the issue of the agreement between Guyana and Jamaica to which Suriname had objected. The heads had mandated that the parties meet within a month’s time after the issue was raised by President Bharrat Jagdeo at the summit in Montego Bay in July.

The original paddy agreement signed between Jamaica and Guyana in February this year had allowed Jamaica to import 65,000 metric tonnes of paddy extra-regionally for a period up to 2010. The new agreement reduces that amount. According to Rohee, Guyana would maintain its 50% market share in Jamaica, while Suriname will also keep its share. A statement circulated by Rohee at the press conference said that the advantages of the new agreement for Guyana will be that this country’s share of the Jamaica rice market will be preserved; and in cases of excess paddy production, the opportunity exists for an export market. Further, it is likely a long-term relationship could be developed with the parent company of the rice mill in Jamaica, ADM; and there will be an end to Jamaica’s unlimited importation of paddy from extra-regional sources.