A $50 million agricultural plan to obtain sustainable food production and help reduce rising food prices, using 1,000 acres of Caroni's 1975 Ltd under-utilised agricultural lands in Edinburgh is up in the air.The proposal, put forward by Caroni's 1975 Ltd CEO Deosaran Jagroo to scores of former Caroni workers has been met with severe criticism and objections.The former workers represent the Chandernagore, Edinburgh, Korea, Wyaby, Brickfield Farmers' Association, headed by its president Janku Ramroop.The proposal follows statements made by Food Production Minister Vasant Bharath who earlier this month stated that two-acre plots of former Caroni lands may soon be turned into large co-operatives, leased by the Government to grow food rather than allow it to go idle.
Approximately 7,476 former workers were offered lands under Caroni's VSEP package in 2006.Last December, 600 leases were handed out by Prime Minister Kamla Persad-Bissessar with another 600 due for distribution.Bharath said the objective was to help reduce the country's staggering $4 billion food import bill.In a March 2 letter written by representative of the recently formed farmers' association Ramdeo Boondoo and copied to Bharath, noted that methods used by Jagroo to entice the former Caroni workers into the proposed programme were dishonest.
Used and abused
"The plan, in my opinion failed to address fundamental steps to encourage sustainable food production and failed to recognise the rights and privileges of ex Caroni employees whom over the years have been used and abused by those in authority," Boondoo argued.To compound matters, Boondoo stated that the ex workers were only offered $5,000 for usage of their two-acre plots at the end of the year, rather than at the beginning of the contract period.
Boondoo stated that Jagroo failed to be frank and open with regards to the composition of his team heading the proposed programme."You and your committee were less than open on financing this project. It should be clearly spelt out if the plots assigned to the managers of the programme be used as collateral for borrowing," Boondoo wrote.Boondoo insisted that the former workers can independently farm their own acreage.Stating that this was a violation of the rights to enjoyment of their properties, Boondoo, who chaired a meeting on March 7 in Chandernagore, told the former workers to reject the plan "until something better is put on the table, which must be legally binding.""Caroni was a loss making entity, do you expect this to make a profit with the same people at the top?" Boondoo asked.Boondoo appealed to the farmers not to be fooled.
A way out
Contacted on Wednesday, Jagroo said the proposal to cultivate 1,000 acres of land in Edinburgh was still being discussed."Everything is in the air."Jagroo noted that for the past five years the majority of Caroni's 7,000 two-acre plots have been vastly under-utilised.Of the 14,000 acres that were handed out, Jagroo said only 600 are currently under cultivation.In Edinburg, which has approximately 1,000 acres, Jagroo said only 26 acres was being utilised for crops."How do you reconcile that?"If the land is not brought to productive use in two years' time, Jagroo said it would have to revert to the State."I don't want it to go back in the hands of the Government. We are offering them a way out. It's more a malicious intend by certain people to obstruct the whole thing."Jagroo said he was not forcing anyone."If they (former workers) could get a better return elsewhere, let them."
Jeopardising traditional farmers
He said the $5,000 offered to the former workers was reasonable, stating that what Caroni was doing was "jeopardising the traditional farmers by offering a far too high a rental. You put pressure on the farmers by competing at such high level."Jagroo noted that since the former workers were allocated the two-acre plots, the land has been going to waste."They have not planted a single thing, which tells me they are not capable of it. They don't have the capital to invest. Minister Bharath has been asking us (Caroni) to reach out to the former workers who are holders of the land to have cultivation going."He explained that when the lands, which cost the former PNM Government $600 million to prepare and develop were handed out by Government, the former workers were asked to pay a rent of $1,000 per acre, which they protested.The rent, Jagroo said was eventually reduced to $200 per hectare.
Jagroo said Caroni has looked at several business models to get the project up and running.The first model offered the former workers an annual rent of $5,000 for use of their plots, while Caroni would access and cultivate the plots.Another option was the former workers cultivate the land while everyone share a pool of resources and enjoy the returns.The third alternative allows Caroni to cultivate the land, the former workers provide employment with both parties sharing in the profits.Asked if the former workers will be entitled to profit sharing, Jagroo said "all this is being worked out."He also admitted that Caroni had approached the Agricultural Development Bank requesting a $50 million loan to undertake the project."The ADB has shown some interest in the models."
Bharath: No privatearrangement
Bharath said the proposal offered was not a private arrangement between Jagroo and any farmer.Essentially, Bharath said what his ministry was looking to do was establish farms utilising two-acre agricultural plots allocated to former workers who are not interested in farming."So what we want to do is encourage as many of them as possible who will not be utilising the land to form some kind of co-operative."He said the objective was to create an enabling environment that gives them an opportunity through the Government to form large blocks by paying them a lease rent.
The former workers will also be entitled to share in the profits at the end of each year.That, Bharath said was the tentative arrangement, insisting that nothing has been cast in stone."It's really to find out if something like this will work. We will be handling this under the umbrella of Caroni 1975 Ltd."Bharath said even if the former workers decide to form a co-operative, the lands will still belong to them.Bharath said people make the assumption that a lot of Caroni workers are farmers "in fact that is not the case."Bharath said he was trying to determine how many of the former workers want to stay in farming or move on to other pursuits."Many workers have not even responded to collect their VSEP."