Senior Investigative Reporter
shaliza.hassanali@guardian.co.tt
There are only 15 rice farmers remaining in the country. T&T once had 6,000 rice farmers in the 90s, but payment delays, climate change, rising fertiliser prices, high cost of production, low yields, unavailability of seeds, and lack of political will have led farmers to abandon the crop and causing a once vibrant and viable sector to crumble.
In 1992, the country produced 21,200 metric tonnes of rice, compared to the 585 metric tonnes harvested in 2018. This figure was provided by National Flour Mills (NFM) in a 2019 Joint Select Committee hearing.
Today, rice production has reached its lowest in the country’s history, with 15 farmers struggling to resuscitate the industry.
T&T has now become highly dependent on rice imports from Guyana, USA, Suriname and India. In 2022, T&T imported 37,000 tonnes of rice, costing $177.1 million.
Two weeks ago, Prime Minister Dr Keith Rowley announced that the largest Indian-based agricultural company, Haryana State Cooperative Supply and Marketing Federation Ltd (HAFED), is considering establishing a rice mill in our country after meeting with private and public entities in T&T.
But for rice farmer Fazal Akaloo, one question came to mind: “Where will HAFED get rice to mill, given our significant drop in production? If you look at the facts, we don’t have an industry for an investor to put down a mill here.”
Akaloo feels HAFED may have a “hidden agenda” in setting up the mill. However, the Sunday Guardian was told that HAFED may partner with state-owned NFM.
“What HAFED may do is invest and upgrade NFM’s 35-year-old mill in Carlsen Field to produce parboiled rice, which is what 80 per cent of the population consumes,” a well-placed government source said.
The mill currently processes white rice.
“This is one way we can reduce our rice imports, ramp up production, and bring a wider cadre of farmers on board, which we need,” the source added.
What Akaloo also found strange was that six months after informing the Ministry of Agriculture that farmers needed a price increase in the staple, given the growing cost of production and land preparation, the Government broke the news about HAFED.
How the rice business works
NFM buys the farmers’ rice at a guaranteed price. Farmers are paid $2.99 a kilogramme for grade one paddy. Grades two and three fetch $2.86 and $1.86 per kilogramme.
In the proposed price increase, the farmers asked NFM for $2.45 per pound for grade one rice, but NFM offered $1.59. For grade two rice, the farmers requested $2.25 a pound, but an offer of $1.47 was put on the table. Higher payments, Akaloo said, would woo farmers back to the land.
Last year, Akaloo said, only five farmers were interested in rice cultivation, but when the ministry injected $5 million to kick-start the industry, the figure grew to 15.
In 2014, farmers cultivated 3,000 acres. But in 2022, rice production dropped to 80 acres. Last year, approximately 1,200 acres of rice were grown. Five containers of seeds imported from Guyana costing $350,000 were provided free to the farmers by the Government.
A larger shipment of seeds is expected to arrive in September. The farmers are also provided with assistance in harvesting, irrigation and drainage. In a few weeks, the farmers will have access to two rice harvesters purchased by the Ministry of Agriculture from China.
While it’s a start, Akaloo hopes the farmers get a higher price for their rice in the 2025 budget.
“One thing farmers have been lacking is finance to grow their crops,” Akaloo said.
“The new rates will give us the push we need. Farmers were left with no income and loans with high interest because of the State.”
The new price structure was put on the table when Akaloo ventured into cultivating 100 acres of eco-friendly rice in Caroni which will be harvested in November. “It’s my first attempt,” he said.
Other farmers have also come on board using less harmful chemicals to minimise environmental impacts.
“We are growing a little more than 500 acres.”
Their target is to cultivate 2,500 acres. Under the guidance of agronomist Marcus Mycoo, farmers are also being trained in management, technology, higher yields, and climate change.
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Farmer’s challenges
Eniat Hosein is one of the thousands of farmers who abandoned his rice fields. “It still hurts my heart. Growing rice is all that I know,” Hosein told the Sunday Guardian recently in Warrenville.
He blamed the industry’s collapse on NFM’s late payments to farmers. In 2013, Hosein was granted a $1.6 million loan from the ADB to purchase a harvester and equipment for his 200-acre farm in Caroni.
“But everything went downhill in 2015 when farmers started receiving untimely payments from NFM. Instead of being paid in 30 days, it took months for us to get our money.”
Hosein could not service his loan, which racked up huge interest. To survive, farmers began planting smaller acreages, selling their equipment, and buying fewer fertilisers.
More than a decade later, Hosein still owes ADB over $1 million.
“My loan is currently out of hand. This is what caused the entire industry to fail. The majority of farmers went bankrupt,” said a frustrated Hosein. Farmers now have a contract with NFM and are paid every 30 days.
In a July 2 letter addressed to Dr Rowley, Agriculture Minister Kazim Hosein, and the ADB, Hosein appealed for their intervention, stating that many farmers have been carrying heavy financial burdens on their balance sheets and appealing for the Government to step in to correct the “mistakes of the past.”
He said farmers are trying to start “with nothing.” Zahir Akaloo, who started growing rice in the Nariva Swamp in 1985 and was forced out in 1998 by environmentalists who thought farmers were destroying the natural habitat, said the Government had failed rice farmers.
“We should have been growing our rice to feed the nation. Instead, we are highly dependent on the availability of rice on the international market. When will we become self-sufficient?”
The Government, he said, neglected the farmers who could have been feeding the nation with locally grown rice. Akaloo said the country has sufficient land to cultivate rice. Rice is grown in Caroni, Plum Mitan, Felicity and El Carmen. Six months ago, Akaloo lost 90 acres of rice valued at $350,000 because of lack of irrigation.
It’s not the first time he has suffered losses. When production was soaring, Akaloo invested in a $3 million mill. “It can mill 3,000 pounds of rice in an hour.” It’s one of three mills the Akaloos family has purchased.
Akaloo began supplying white rice to the School Feeding Programme and supermarkets.
“Somebody accused me of selling dog rice, and I stopped the supply. That was a big lie.”
The mill and a rice dryer have been collecting dust in a warehouse in Warrenville. Akaloo also could not compete with growing imports. He also complained there was no seed bank in the country. Some farmers germinate their seeds or obtain them from NFM.
“Sometimes we get high yields with the seeds ... other times it’s poor. It’s a hit or miss for us.” Long-standing farmer Richard Singh said he had to shift from planting rice to short-term crops due to repeated challenges and losses. I want to believe I am probably the stupidest farmer in the world,” he said.
Singh said the Water and Sewerage Authority (WASA) accused him twice of extracting water from a restricted river in El Carmen while cultivating rice.
The first incident took place in 2014. Singh said he was siphoning water from a ravine. WASA seized Singh’s pump, and he was later charged. In 2017, the case was dismissed in court. Singh turned to cultivating short-term crops to sustain his livelihood.
“My passion and expertise is growing rice so I took a chance and planted a crop again.” Last July, Singh said WASA accused him of extracting water from the river again and confiscated his pump. “I showed them the pump was pulling water from a ravine.”For three weeks, Singh could not water his crop, which wilted and died. “Then WASA came back to say they realised I wasn’t taking the water from the river after I lost my entire crop valued at $300,000. Oh God! How much time I go lose money?”
Refusing to give up, Singh is giving the industry another try.
“I borrowed over $200,000 to prepare and plant 200 acres of rice. Ah taking a big gamble. I don’t know what will happen this time. I keeping meh fingers crossed.”
The Sunday Guardian WhatsApped a list of questions to NFM’s CEO Ian Mitchell and Hosein regarding the operationalisation of HAFED’s mill. Mitchell said he could not speak on the matter, while Hosein did not respond.
