The Guyana Rice Development Board (GRDB) has secured two more agreements that will see rice shipments from Guyana being doubled in 2016.
In 2015, export of rice from Guyana to Jamaica was 48,000 tonnes.
The two agreements were signed between the GRDB and the Jamaica Rice Milling Company Limited and Musson (Jamaica) Limited, with both companies agreeing to import a total of 80,000 tonnes of rice from Guyana this year.
The agreements, according to the GRDB seek to organize the supply of rice to the Jamaican market and prevent “under pricing and under invoicing by suppliers.”
They will also allow the Jamaican companies to buy rice from licenced rice millers/exporters form Guyana, with minimum orders of 1,500 tonnes to be given to mills for export.
Additionally, the companies have established a price schedule with the minimum price to be paid for white rice being US$ 400 per tonne. Prior to the agreements, Guyanese exporters were receiving prices ranging from US$ 345 – US$ 370 per tonne. GRDB says 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.
GRDB says it 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.