Panama finally pays $1.5B to 19 local rice millers

After a six-year wait, 19 local rice millers have received the $1.5 billion owed to them by the Panamanian Government.

The cheques were presented by Minister of Agriculture, Zulfikar Mustapha at the Ministry’s Regent Road office on Wednesday.

The debt stemmed from a 2018 shipment of 9,000 tonnes of rice to Panama, which went unpaid, leaving the millers in financial limbo. Upon assuming office, the PPP/C administration immediately initiated efforts to recover the outstanding funds

Many of the millers expressed relief, noting that the funds will enable them to revitalise their rice mills.

Wazeer Hossein of Wazeer Hossein Rice Milling Complex shared his gratitude, stating that the mill will now reopen.

“…because I waited so long for it. It was overdue. It even affected us in the industry. We were closed for a while because of the payments,” he added.

Mohindra Persaud of Nand Persaud & Company described the legal process as ‘very long and stressful’ but welcomed its resolution.

He noted, “I guess now all of us are happy that this financial issue has been settled. This brings the Panama sales to a closure. I want to say thanks to the government and Minister Zulfikar Mustapha for getting this matter concluded.”

Praemwatie Baliram of D Suklall Rice Industry echoed similar relief, stating, “We feel a great relief because we were worried about the equipment that we have in the mill. So, now, that we get the money, we will reopen.”

Fyuse Hoosain of Fyuse Hoosain Rice Milling Complex also confirmed that his mill would resume operations with the newly received funds.

The long legal battle, which disrupted livelihoods and forced several mills to close, was finally resolved after the government took the matter International Chamber of Arbitration in France , securing the funds owed to the Guyana Rice Development Board (GRDB).

Minister Mustapha explained that Panama had given an undertaking to pay the principal amount, allowing for the arbitration to be withdrawn once the millers were compensated.

“We gave them [Panama] an undertaking that as long as the principle is paid and the rice millers are paid…Then, we will ensure that we withdraw that arbitration…The money has been paid into the GRDB’s account. It was very unfortunate that some of you had to come out of business,” he explained. 

Minister Mustapha urged the millers to settle any outstanding payments to the GRDB and small-scale farmers, while reaffirming the government’s commitment to supporting the rice industry.

“We are hoping that the rice industry will continue to excel because we have made a lot of input over the last four years. Over $3.6 billion we have invested in the rice industry to bring relief to the farmers,” Minister Mustapha noted.