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Shortage of Guyanese rice persists in face of attempted blockade
Patrick Foster, Business Observer writer fosterp@jamaicaobserver.com
Wednesday, October 10, 2007
Local rice distributors have confirmed a shortfall in the product from Guyana even while Guyana maintains that it is able to supply most of Jamaica's 80,000-ton annual requirement and will block efforts to import from the US.
In the wake of the Jamaican government's planned importation of rice from the US to avert a shortage after Hurricane Dean, Guyanese officials yesterday vowed to use the Caribbean Community (Caricom) to block Jamaica's bid, arguing that they can supply most of the island's needs instead.
However, Derrick Nemhard, general manager of Jamaica Rice Mills, the island's largest importer, told the Business Observer that despite Guyana's claim they have not received any rice from them since August.
According to Nemhard, his company requires 2,000 tonnes of rice per month to satisfy local demand and there has been a shortfall, which had to be filled. In August the company received 1,930 tonnes which Nemhard said is equivalent to three weeks' supply.
"The market is being supplied by US rice because Guyana rice is unavailable," said Nemhard, adding that the next shipment of Guyana rice to his company is due for the end of October.
At Geddes Grant, the company's normal import of five containers per week from Guyana is now down to two, according to reports from the company.
"This has not happened for a long time but bulk rice is woefully short right now," said a representative who requested anonymity.
"They rush to supply the European market first and when that is done they supply us," he charged.
"Jamaica is a secondary market, Europe is Guyana's major market," agreed Gordon Stewart of Musson Jamaica. Stewart said that maturing rice was affected by bad weather reducing the rice supply by at least 25 per cent.
Guyanese agriculture minister Robert Persaud is scheduled to meet with Karl Samuda, minister of industry, commerce and investment today to discuss the impasse.
After Hurricane Dean, Samuda sought to ensure local supplies of rice by allowing importation of the staple from Louisiana in the US, drawing concerns from Guyana which charged that it was in contravention of Caricom rules of trade as no waiver of tariff was requested.
Samuda defended his decision saying that the normal shipment of rice from Guyana would not arrive in time due to shortages of output from farms in Guyana.
Persaud, however, accused the Jamaican government of acting on false assumptions.
"At no time did we receive any request for rice that we could not supply and at no time were any requests made for a waiver of the common external tariff (CET)," he said.
But Nemhard told the Business Observer yesterday that a waiver was not always necessary as Caricom provisions are in place to accommodate extra-regional rice imports in the event of a disaster.
Under the provision Article 226, Caricom member states are able to immediately import supplies to avert a shortage, Nemhard explained.
"There is a specific quantity of 35,000 tonnes that represent consumption for a month."
Nemhard added that Guyana was indeed experiencing a shortfall in production which could spill over into next year.
"Not only will the crop be late but it will also be small. We are expecting not to get any rice after Christmas," Nemhard said.
In August Guyana supplied Jamaica 4,223 tonnes of rice shared between 13 distributors, approximately 1,700 tonnes below the 6,000 ton monthly demand.
Apart from the Rice Mills, Jamaica Inter Carib Rice receiving 448 tonnes, Geddes Grant 384 tonnes, Musson Jamaica receiving 288 tonnes and Progressive Grocers 264 tonnes, were the other top importers during the month.
Patrick Foster, Business Observer writer fosterp@jamaicaobserver.com
Wednesday, October 10, 2007
Local rice distributors have confirmed a shortfall in the product from Guyana even while Guyana maintains that it is able to supply most of Jamaica's 80,000-ton annual requirement and will block efforts to import from the US.
In the wake of the Jamaican government's planned importation of rice from the US to avert a shortage after Hurricane Dean, Guyanese officials yesterday vowed to use the Caribbean Community (Caricom) to block Jamaica's bid, arguing that they can supply most of the island's needs instead.
However, Derrick Nemhard, general manager of Jamaica Rice Mills, the island's largest importer, told the Business Observer that despite Guyana's claim they have not received any rice from them since August.
According to Nemhard, his company requires 2,000 tonnes of rice per month to satisfy local demand and there has been a shortfall, which had to be filled. In August the company received 1,930 tonnes which Nemhard said is equivalent to three weeks' supply.
"The market is being supplied by US rice because Guyana rice is unavailable," said Nemhard, adding that the next shipment of Guyana rice to his company is due for the end of October.
At Geddes Grant, the company's normal import of five containers per week from Guyana is now down to two, according to reports from the company.
"This has not happened for a long time but bulk rice is woefully short right now," said a representative who requested anonymity.
"They rush to supply the European market first and when that is done they supply us," he charged.
"Jamaica is a secondary market, Europe is Guyana's major market," agreed Gordon Stewart of Musson Jamaica. Stewart said that maturing rice was affected by bad weather reducing the rice supply by at least 25 per cent.
Guyanese agriculture minister Robert Persaud is scheduled to meet with Karl Samuda, minister of industry, commerce and investment today to discuss the impasse.
After Hurricane Dean, Samuda sought to ensure local supplies of rice by allowing importation of the staple from Louisiana in the US, drawing concerns from Guyana which charged that it was in contravention of Caricom rules of trade as no waiver of tariff was requested.
Samuda defended his decision saying that the normal shipment of rice from Guyana would not arrive in time due to shortages of output from farms in Guyana.
Persaud, however, accused the Jamaican government of acting on false assumptions.
"At no time did we receive any request for rice that we could not supply and at no time were any requests made for a waiver of the common external tariff (CET)," he said.
But Nemhard told the Business Observer yesterday that a waiver was not always necessary as Caricom provisions are in place to accommodate extra-regional rice imports in the event of a disaster.
Under the provision Article 226, Caricom member states are able to immediately import supplies to avert a shortage, Nemhard explained.
"There is a specific quantity of 35,000 tonnes that represent consumption for a month."
Nemhard added that Guyana was indeed experiencing a shortfall in production which could spill over into next year.
"Not only will the crop be late but it will also be small. We are expecting not to get any rice after Christmas," Nemhard said.
In August Guyana supplied Jamaica 4,223 tonnes of rice shared between 13 distributors, approximately 1,700 tonnes below the 6,000 ton monthly demand.
Apart from the Rice Mills, Jamaica Inter Carib Rice receiving 448 tonnes, Geddes Grant 384 tonnes, Musson Jamaica receiving 288 tonnes and Progressive Grocers 264 tonnes, were the other top importers during the month.
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