While Panamanian rice producers declared themselves in bankruptcy, the Government of Panama, led by Juan Carlos Varela, decided to save the production of this grain in Guyana.
The information about the massive purchase of rice from Guyana has been restricted by the Varela administration, but in Guyana the Ministry of Agriculture has made public the information of the agreement of the grain export to Panama.
Even the authorities in Guyana say that after the loss of the Venezuelan market for its rice, the massive export of grain to Panama saved their producers from going bankrupt, fact which translates into a forceful statement against our domestic producers who assert they are going through their worst crisis faced with several incentives and marketing problems.
Panama America formally asked the Agricultural Marketing Institute (IMA) and the Ministry of Agricultural Development (Mida) a copy of the marketing agreement signed between the governments of Panama and Guyana for massive imports of rice. Both institutions refused to give information about the agreement. The IMA said that the responsibility of this agreement lies on the Mida, but this entity did not answer the questionnaire sent to them by Panama America on April 17 either.
However, the Government of Guyana has certainly published details of the agreement and even regarded the IMA of Panama as a marketer with whom they have managed to do a very profitable business in benefit of their rice producers.
On August 16, 2014, the Ministry of Agriculture of Guyana issued a press release that announced the signing of the memorandum with Panama. Based on this agreement, "Guyana commits to provide 5,000 tons of rice to Panama monthly, starting in September," says the note of August 2014 at the beginning of the Varela administration.
The note of the Ministry of Agriculture of Guyana specified that contracts to export rice to Panama should continue during year 2015.
On March 18, 2016, the Ministry of Agriculture of Guyana revealed more details on the massive export of rice to Panama, and even reported an increase in the export that they would be sending to the country of the Canal.
The paper concerned states that the Government of Guyana was, at that time, in search for foreign markets such as Panama to prevent the Guyanese products from being lost.
The note from the Government of Guyana States textually: "To this end, Minister of Agriculture, Hon Noel Holder received a call from representatives of the Institute of Agricultural Marketing of Panama city, Eduardo Carles, now Minister of Agriculture of Panama. During the successful phase of discussions, the Panamanian agricultural marketing institute (IMA) announced its commitment to import more rice from Guyana. This will allow more than 11 thousand 300 tons of rice sent to the Spanish-speaking country in the next three months. The Guyana Rice Development Board (GRDB) during the initial phase of the negotiations sent, approximately, 7,500 tons of rice to Panama. The increase in the quota will help significantly rice farmers throughout the country."
The Ministry of Agriculture of Guyana said in that its Minister Holder was ensuring stakeholders in the rice industry in that country that not all would be lost with the loss of the Venezuelan market and that Guyana was doing business with other nations on a larger scale.
Meanwhile, the Guyana Rice Development Board´s general manager, Nizam Hassan, said that the move to Panama is positive for both the industry and for the production of the South American country.
One-sided agreement
Omar Willians, Vice President of the National Federation of Rice Producers of Panama, said that Juan Carlos Varela, President of Panama, did not care about harming the Panamanian producers by signing this agreement with Guyana.
He said that the Panamanian producers to date have not been formally informed about the agreement, but the consequences of it will be bankruptcy of the national producers of this grain. "It is a one-sided agreement for Panamanian rice producers, and this is another example of the inability of President Varela who decided to protect producers in Guyana and make us suffer", said Willians.
