2010-03-19
Jamaica to Pay More for Imported Rice from Guyana
Over the next month, Jamaica will begin paying 10 per cent more for rice from Guyana, resulting in a minimum 10 to12 per cent increase to consumers on the local market.
This was stated by Minister of Industry, Investment and Commerce, Hon. Karl Samuda, at a press conference at the Ministry, in New Kingston on March 17.
The Minister explained that the price increase is due mainly to the El Nino phenomenon, a weather type, which adversely affects weather patterns around the world, and is expected to cause reduced crop production, due to little or no rainfall.
El Niño-Southern Oscillation, often called simply ENSO, is a climate pattern that occurs across the tropical Pacific Ocean on average every five years. It is best known for its association with floods, droughts and other weather disturbances in many regions of the world, which vary with each event. Developing countries dependent on agriculture and fishing are usually the most affected.
The price of rice imported from the United States is not expected to increase. Last year, Jamaica received 57 per cent or 44,882 metric tonnes of its total rice imports from Guyana, and 25 per cent or 25,266 metric tonnes from the United States.
Meanwhile, Mr. Samuda said there is hope on the horizon, as the pilot project to grow rice locally, which was launched by the Ministry of Agriculture last year, has been showing positive signs.
"As a result of that, Jamaica Rice Mills is at the moment looking at a possible investment of US$500,000 to improve their facilities and equipment. This is a direct result of our planned programme to grow rice in Jamaica. Of course, it will be dependent on certain waivers that would be granted to the company in order to enable them to import paddy rice, to support our local production of rice," the Minister explained.
Another positive aspect of this, he said, is that there has been greater consumption of locally grown food, due to the reduction in the amount of imported rice that is consumed locally.
The Minister assured that even if locally produced rice is at the slightly higher end of the price scale initially, there will be overall benefits for the economy as local production will provide employment for Jamaicans.
He stressed that the price of local rice will not be so high as to be unaffordable or uncompetitive. "It depends on the economies of scale. If we have a small output, then the price is more challenging and as we develop the kinds of economies of scale that will make us competitive, then the price will be competitive against the Guyanese rice," he said.