Nuevo contrato anual de 54 millones de dólares con Venezuela para el suministro de arroz
The Government of Guyana has expanded and extended the rice export agreements with the Venezuelan market with the upgrading of the three previous contracts and the establishment of a fourth contractual arrangement. With the revision of the previous contracts and this new agreement with the markets in the Bolivar Republic of Venezuela, the Government of Guyana has once again ensured that rice farmers, millers and exports are allowed to benefit from increased quantity of rice exports and at the same time to earn better prices for their products which may be above the normal world market prices. The upgraded contractual arrangements for the annual supply of Paddy and Rice to Venezuelan market are:
1. First Contract: 40,000 metric tonnes of Paddy for US$380 per metric tonne, this was revised to US$420 per metric tonne and 10,000 metric tonnes of White Rice at US$600 per metric tonne; this was revised US$US$ 700 per metric tonne.
2. Second Contract: 50,000 metric tonnes of Paddy at US$420 per metric tonne; this was revised to US$480 per metric tonne for all shipment made in 2011 and 20,000 metric tonnes of White Rice at US$700 per metric tonne; this was revised to US$800 for shipments made in 2011.
3. Third Contract: 50,000 metric tonnes of Paddy at US$480 per metric tonne and 30,000 metric tonnes of Rice at US$800 per metric tonne.
The new contractual arrangement which was signed allows for:
1. Fourth Contract: 50,000 metric tonnes of Paddy at US$520 per metric tonne and 20,000 metric tonnes of Rice at US$800 per metric tonne. In addition, Guyana will supply 16,000 tonnes of white rice and 5,000 tonnes of paddy outstanding from the previous contract. The total value of the new contracts is USD$54M.
Venezuelan Ambassador to Guyana, HE Dario Morandy and Agriculture Minister, Hon. Robert M. Persaud during a press briefing to provide an update on the new rice supply agreement between Guyana and Venezuela. Ministry of Agriculture’s Boardroom. October 7, 2011
It must be noted that these initial agreements between the Governments of Guyana and Venezuela were made possible by a meeting between Present Bharrat Jagdeo and President Hugo Chávez. These initial agreements allow for rice to be exported to Venezuela for the first time between the two countries. This tarde agreement has allowed for greater benefits to the producers of rice in Guyana and the consumers of the various rice products in Venezuela. This effective bilateral trade agreement between these two South American countries have over the years allowed for improved political and economic relations between Guyana and its neighbour.
In the meantime, harvesting of the present rice crop has commenced, where farmers are making full use of the sunny weather. For Region 2, the exercise is moving apace in the northern and to some extent the southern sections. In the areas where harvesting has commenced, farmers have reported that they are reaping an average of 20-25 bags per acre.
The total amount of rice produced locally in 2011 to date was 249,239 metric tonnes. The amount of rice produced for the second crop so far amounted to 41,600 metric tonnes at the end of September. The year’s target is
Further, on the international rice market there has been an upward production revision for 2011/12 global rice production forecast to be higher. The 2011/12 global rice production forecast was raised by 2.1 million tonnes during the month of September to 458.4 million tons (milled basis), led mostly by higher production forecasts for China and Brazil. Global rice production in 2011/12 is projected at a record, up nearly 2 percent from 2010/11.
Global rice production changes for 2010/11 were nearly offsetting. Global production was raised just 25,000 tonnes and remains forecast at 451.2 million tons. Vietnam’s 2010/11 production estimate was raised 95,000 tonnes to a record 25.9 million tons based on information from the U.S. Agricultural Officer in Ho Chi Minh City. The increase was mainly due to a larger harvested area for the country’s autumn rice crop, up 30,000 ha from the previous estimate. Additionally, the 2010/11 U.S. milled rice production estimate was raised 39,000 tons this month to 7.6 million tons based on a revised year-end milling yield.
Global trade for 2011 was raised by 455,000 tons this month to a record 33.2 million tons. This increase was largely due to a revision in Vietnam’s export forecast, up 600,000 tonnes to a record 7.0 million tonnes based on a report from the U.S. Agricultural Officer in Ho Chi Minh City. This increase was partially offset by a 100,000-ton reduction in the European Union’s export forecast to 300,000 tonnes, based on shipments. Additionally, the U.S. export forecast was reduced 50,000 tonnes, based on a smaller long-grain crop and a slowing export pace.
Therefore, the Guyana Rice Development Board will continue to take all necessary initiative to ensure that the local farmers, millers and exporters continue to gain the greatest benefits of exporting rice to the various world markets. The rice output of Guyana for 2011 will surpass the levels what were achieved in 2010, as this is evident from the first crop and the projected second crop. This greater increase in output will allow for improved economic benefits to be achieved by all stakeholders of the rice sector.
Rice has always been a pillar of economic growth in Guyana and with the volatility of the world market prices for various commodities and in particular rice and rice related items, Guyana will continue to achieve significant benefits from higher world market prices.
The Ministry of Agriculture has over the years, and will continue to invest significantly in the infrastructure of the rice sector which will allow for the continuous transformation of a modern value-added sub-sector to the traditions of harvesting rice in Guyana.
The Government wishes to thank the people and Government of Venezuela for concluding this agreement. I also wish to express my appreciation to the Venezuelan Ambassador for his efforts and support.