A ten-year plan, drafted in 2014 and estimated to cost taxpayers almost half a billion dollars to breathe new life into the struggling rice industry, has never got off the ground.
The 81-page “T&T Rice Industry Development Plan 2014-2024,” drafted by technocrats in the then Ministry of Food Production, focused on addressing food sovereignty, diversifying the economy, and reducing the country’s $5 billion food import bill.
In light of the 2007-2008 rice price crises, the plan pointed out that many governments placed greater emphasis on promoting self-sufficiency in rice, which we need to focus on.
However, the recommendations were never implemented and eight years later T&T still has to rely on other countries–mainly Guyana, for our rice supplies.
The document stated that T&T’s mode of rice production was inefficient and in need of an overhaul for the realisation of rice yields and end product quality on par with global trends.
It also stated that in terms of rice production per hectare, T&T ranked the lowest amongst the majority of producers in the region, bearing in mind that in 2011 T&T consumed 34,000 tonnes of rice at a cost of $121 million.
Of this figure, 2,273 tonnes were locally produced rice while the remainder was imported parboiled rice from Guyana and South America.
Fast track eight years later, T&T’s rice production has dwindled to a mere 585 tonnes and we are far from obtaining food security in the staple.
Up to 1995, the industry produced at least 30 per cent of the country’s rice supply with a surplus to export, which was supported by a farming population of 6,000.
Today, the industry has less than a dozen farmers who produce five per cent of the rice we consume. Many farmers are struggling to pay loans as the industry is failing.
The plan cited the removal of large-scale farmers from the Nariva Swamp, the introduction of a grading system for rice, lack of certified seeds, poor irrigation, inadequate infrastructure, no financing and training for farmers, the absence of agronomists, and no meaningful interaction between producers and buyers to improve the competitiveness that led to the industry going downhill over the years.
While some of these measures were implemented under the then food production minister Vasant Bharath, there was no continuity when he demitted office.
According to the plan, the new industry model would consist of public/private agreements with a targeted tonnage of finished rice set at 17,000 tonnes per year which represents “50 per cent of self-sufficiency based on average rice demand levels over the last five years at 34,000 tonnes per annum.”
This tonnage is equivalent to 10,000 acres of rice paddy production.
Areas pinpointed for rice production were Plum Mitan, Fishing Pond, Oropouche, Nariva, Navet, Caroni, Felicity, and Cunupia.
The estimated projected cost to develop the industry was placed at $477 million over the period 2014 to 2024.
“This cost omits price support under the proposed private/public sector model. The private mill operators will pay farmers the world market price for rough paddy. Should the world market price fall below the current government-guaranteed price, then the State will pay the difference so that farmers’ benefits are secured.” There was also a recommendation to privatise the milling industry by inviting suitable private sector investors, developing a working relationship with Guyana (a net exporter of rice) to help champion T&T’s rice industry, and establishing a rice unit to take the sector forward.
According to the plan, the ministry received expressions of interest from potential investors and negotiations were underway for the engagement in one of two ways.
The first is a private entity to establish a new mill with the capacity to mill 18,000 tonnes per annum. This model is principled on open-market conditions whereby any private entity is free to operate a mill in this country.
NFM has agreed to work together with farmers
NFM’s CEO Ian Mitchell admitted the state-owned company has to play an integral role in supporting local rice farmers who have a lot to offer in providing food security at this critical juncture.
In February, Mitchell met with several farmers to iron out their biggest concern–late payments. The prolonged delay in payments resulted in scores of farmers facing bankruptcy after being unable to service their loans and pay bills.
NFM pays the farmers $2.99 and $2.86 for grades one and two of paddy, respectively.
Mitchell said the company came up with a process to expedite payments and as far as he was concerned the matter has since been addressed.
“Coming out of that, there has been somewhat of an agreement to work together, so NFM could play a more active role in supporting the rice farmers. We believe they have a lot to offer in providing food security. It is always better if we can produce stuff locally and reduce the need for foreign exchange and food importation.”
Mitchell, who joined NFM last year, said that once there was a rejuvenation of the industry, there would be opportunities for white and parboiled rice.
“But we have not gotten that far as yet. We are still trying to work out the mechanics. The farmers have expressed an interest in furthering those discussions. They need to be able to articulate what they need, and we are not necessarily the persons to provide all of that support. Whatever we can contribute, we will. The industry is way bigger than just NFM.”
One initiative the farmers praised Mitchell for was his undertaking to try and obtain seeds from Guyana.
However, Mitchell said, they moved a bit late in seeking to source the seeds, stating that for the next crop they would have to put in their request early.
In a 2019 Joint Select Committee meeting, NFM admitted that 95 per cent of locally grown rice ends up as input into animal feed while five per cent is used for human consumption.
The committee also heard that local rice production had dropped from 21,000 metric tonnes in 1992 to 585 metric tonnes in 2018.
Asked if there were any plans by NFM to improve its rice production, Mitchell said their discussions had been focused on securing rice as an input to one of their processes.
“The expectation is that once that goes well, and we start seeing an increase in volumes, we are very much interested in getting back to the point where there are other options to rice.”
Mitchell said there may be other things NFM would have to look at as it relates to milling and processing, but they have not reached that point as yet.
Asked if NFM may have to refocus on the way the company operates, Mitchell said “it is likely. We cannot do it alone. It’s about where we see ourselves in the whole national framework from the standpoint of being able to provide food for T&T.” As challenging as it has been for NFM to import inputs for its business, Mitchell said, the company has to become creative and open-minded in charting its way forward.
“It is going to be a challenging period. It has been a challenging period but we feel if we do what we have to, there is a way. We can get through this in a way that would work out for the people of T&T.”
Hosein to get response from his technical team
Guardian Media WhatsApped Agriculture Minister Kazim Hosein a list of questions regarding what measures his ministry intends to take to boost the dying rice industry, woo farmers back to the land and wean T&T from imported rice.“I have received your request and forwarded it to the technical team for a response,” was Hosein’s response on Thursday.
Guardian Media is still awaiting a response from the technical team.
