Reprinted from Caribbean Net News
caribbeannetnews.com

EU funds to boost Suriname rice industry

Saturday, November 25, 2006

by: Ivan Cairo
Caribbean Net News Suriname Correspondent
Email: ivan@caribbeannetnews.com

PARAMARIBO, Suriname: Suriname and the European Commission (EC) signed three agreements Thursday, to boost the rice industry in the CARICOM member state. The contracts were awarded to Surinamese companies.

At the signing ceremony EC representative, Helena Laakso, disclosed that the European Commission has allocated 24 million euros for restructuring and modernisation of the rice industry in the Caribbean.

For its rice sector, Suriname will receive funds totaling 9.2 million euros. The funds are to be used for capacity building in the form of technical assistance and expertise, research and extension, financial facilities and rehabilitation of the irrigation system.

The capacity building programme already started in March of this year, while the research and financial facility component were launched last Saturday in the western district of Nickerie, Suriname’s main rice farming region.

According to Laakso, about 80 percent of all the EC contracts in Suriname have been awarded to Surinamese contractors, indicating that, over the years, more and more Surinamese contractors have been able to comply with EU standards.

The Anton de Kom University of Suriname received a grant for research and extension in the amount of 1 million euro, while a loan totaling 3.5 million euros was extended to the Agriculture Bank. These funds will be utilised to establish a lending programme for rice millers, to buy crops from the farmers for cash. Previously, rice farmers had to wait for months before being paid by the millers.

For the improvement of the irrigation systems in the rice growing areas, contracts totaling 3.1 million euros were signed with two contractors.

Laakso warned that, although the EC-funded programme is moving ahead, “this alone is not enough”. What is needed, Laakso further stated, is that rice farmers and agriculture entrepreneurs in Suriname “take up the challenge to adjust to an ever more bolder and competitive world market”.

Vice-president Ramdien Sardjoe hopes that with the assistance of the European Commission the problems in the rice industry can be solved as soon as possible.

Meanwhile, the banana sector has surpassed the rice industry as Suriname’s main agriculture sector. According to Kermechend Raghoebarsingh, Minister of Agriculture, Cattle Breeding and Fisheries, in 2005 the banana sector earned over US$1 million more than the rice industry. It is expected that for 2006 the export income from bananas will be even higher.

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