Analysis and News

US$123M earned from rice exports in first half of 2021

BY GEOCAP's Contributor: Navendra Seoraj

The resilience of Guyana’s rice industry was tested over the past six months, as it was faced with not only pandemic-induced challenges but also those created by adverse weather conditions, which resulted in flooding across Guyana.

Many communities, especially those dependent on farming, were severely affected by flooding and still continue to reel from the effects of this natural disaster, although water would have receded significantly in some areas.

To mitigate the impact of the disaster on those communities, local authorities installed new pumps and drainage tubes; dredged canals and excavated clogged channels; deployed equipment countrywide to conduct emergency clearing of drains and canals, and repaired breaches and damaged infrastructure.

Owing to those interventions, the rice industry was able to flourish and remain resilient. And this is reflected by the earnings recorded from the export of this commodity at the end of the first half of this year.

Based on available statistics, US $123,023,868 million was earned from the export of paddy, rice and rice by-products between January and June, 2021. On average, rice accounts for 3.3 per cent of Guyana’s total Gross Domestic Product (GDP).

According to information from the Guyana Rice Development Board (GRDB), Guyana’s rice industry is the largest sub-sector of the country’s agriculture sector. The industry is by far the greatest user of arable land with several thousands of families directly and indirectly associated with the industry. Rice is cultivated primarily along the coastal belt in Berbice, Demerara and Essequibo.

There are two rice crops annually, the first (spring) and second (autumn) crops. The second (autumn) crop is planted around April-June and is reaped in the September-October period while the first (spring) crop is planted in November-December and harvested in March-April.

The rice industry’s success has been consistent, and this was evident even in 2020, when Guyana was contending with the early effects of the COVID-19 pandemic and a protracted electoral process.

In that year, according to available information, exports for January to November totalled 549,066 tonnes of paddy, rice and rice by-products valued at US$225,772,431 compared to 481,2l2 tonnes valued at US$201,808,589 for January to November, 2019. This represented an increase of 67,854 tonnes (14 per cent) in tonnage and US$23,963,842 (12 per cent) in value.

During 2020, Guyana exported rice and rice products to 40 countries. Major importing countries were Jamaica, Trinidad, Belgium, Holland, France, Italy, Poland, Portugal, Spain, United Kingdom, Columbia, Haiti, Honduras and Venezuela.

This year, by capitalising on new and existing markets, the country is projected to export 649,480 tonnes of paddy, rice and rice-by products valued at US$257.3 million.

The sector, despite its challenges, has shown promise based on its aggregate production at the end of the first quarter of 2021. The Bank of Guyana, in its first quarterly report for this year, stated that there was an increase in the output of rice by 79.9 per cent.

“Rice production soared notwithstanding the adverse weather conditions experienced during the first crop,” the central bank noted.

As the industry moves ahead into the second crop, the Ministry of Agriculture has said that it is working to minimize the effects of potential flooding.

Agriculture Minister, Zulfikar Mustapha, was reported in the Guyana Chronicle as saying that, so far, approximately 30,000 acres of rice have already been sown, with inclement weather threatening the outcome of the intended harvest.

It was also reported  that the minister said even though many rice lands are facing threats of being flooded, only a small amount of the first rice crop was damaged.

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