Nineteen rice millers across Guyana have finally received approximately $1.5 billion in outstanding payments from a 2018 rice deal with Panama. This comes after the Government of Guyana, through the Guyana Rice Development Board (GRDB) and the Ministry of Legal Affairs, successfully settled the matter with Panamanian officials. The payments represent long-overdue compensation for rice shipments made six years ago, during a period marked by a breakdown in arrangements under the previous administration.
The outstanding sums, transferred to the GRDB accounts, were disbursed to millers during a formal ceremony on Wednesday, October 19. Minister of Agriculture, Hon. Zulfikar Mustapha, expressed the government’s relief at resolving the issue, while also criticizing the former APNU/AFC administration for its failure to address the matter in a timely manner.
“When this agreement was signed, on August 14th, 2014, it was under the former PPP/C government, and we had a very smooth arrangement,” Minister Mustapha said. “Any hiccup was dealt with by the Ministry of Foreign Affairs and the Ministry of Agriculture. Then, in 2018, we had this issue. The shipment from 2018 was not paid for, and then we had a breakdown of the entire system. Because of that, a number of mills—about six or seven—went out of business.”
Minister Mustapha noted that the previous administration’s failure to secure the payments caused severe financial distress for millers and impacted the rice industry. “Today, we are here, and we will be handing over payments to those millers who were owed money. This shows the government’s commitment to the industry. Over the years, the government has made a lot of budgetary allocations to develop the sector because this is a very important sector. Unlike the previous government who said rice is private business, for us, rice is the country’s business.”
The Panamanian rice deal was initially established under the PPP/C government in 2014, but complications arose in 2018 when two shipments of rice, each weighing approximately 20,000 tonnes, were sent to Panama on credit. However, the payments were never made, leaving millers in financial limbo. Since assuming office, the PPP/C government made it a priority to pursue the matter and secure the outstanding funds.
Minister Mustapha urged millers to use the funds to settle outstanding debts, particularly with the GRDB and small farmers who were also affected by the payment delays.
