THE JAMAICAN Government has agreed to give Guyana a larger market share for its paddy (unprocessed) rice.
This follows recent negotiations between both countries on the importation of paddy rice from Guyana. In 2000, Jamaica began importing more rice from the United States as a result of the introduction of a duty-free concession which, subsequently, reduced the amount imported from Guyana.
Minister of Information, Senator Burchell Whiteman, gave details on the new arrangement at the weekly post-Cabinet press briefing on Monday at Jamaica House.
"There is an agreement which provides that there will be a cap of 65,000 metric tonnes on paddy rice imported from sources external to CARICOM," he said, explaining that this meant a larger guaranteed market for Guyana as the total size of the market for paddy rice was approximately 140,000 metric tonnes annually.
"Over time, the entire rice importing regime will be modified, which we believe will be to the advantage of our CARICOM exporter of rice and also to the consumers within Jamaica," he added.
Under the US PL 480 Aid programme, Jamaica imported thousands of tonnes of subsidised American rice. However, this did not go down well with Guyana, which controlled up to 50 per cent of the Jamaican rice market and was clamouring for an even larger market share.
For years, Jamaica has been one of Guyana's biggest importers of rice, followed by the United States, which in a 1999 survey accounted for 35 per cent of imports that year, followed by St. Vincent and the Grenadines, The Netherlands Antilles and Suriname for the remaining eight per cent. With lower prices, lower transportation costs and no perceived difference in quality, Guyanese rice have been able to maintain a strong position in the market.
