Guyana Rice Development Board and two Jamaican companies recently signed agreements that will see the export of rice from Guyana almost doubling in 2016. In 2015, export of rice from Guyana to Jamaica was 48,000 tonnes.
The two agreements were signed between the Guyana Rice Development Board and the Jamaica Rice Milling Company Limited and Musson (Jamaica) Limited. Both companies have agreed to import a total of 80,000 tonnes of rice from Guyana during 2016.
The agreements seek to organize the supply of rice to the Jamaican market and prevent under pricing and under invoicing by suppliers.
The agreement allows the Jamaican companies to buy rice from licensed rice millers/exporters form Guyana. Minimum orders of 1,500 tonnes will be given to mills for export.
In addition to committing to import increased volumes of rice, the companies have also established a price schedule with the minimum price to be paid for white rice being US $400. per tonne FOB Georgetown. Prior to the agreements, Guyanese exporters were receiving prices ranging from US $345. – US $370. per tonne. This means that Guyanese millers will earn an additional US $30-US $55. per tonne of rice exported to Jamaica, or an additional US $2.4 million – US $4.4 million annually. With the increased price for rice, millers are expected to offer a higher price for paddy. For the first (spring) crop of 2016, some mills have been paying between G $2,200 (grade C) – G $2,700 (grade A) per bag of paddy.
Millers have already begun to receive orders. One rice miller who has received a 3,000 tonne order, hailed the agreement as a very positive step in the development of the rice industry of Guyana, stating that “he is very happy with the agreement that the GRDB has signed with the two companies in Jamaica”.
Guyana Rice Development Board will continue to provide marketing and business facilitation services to all stakeholders in the industry in its efforts at building a strong and sustainable rice industry.