THE price has increased locally and Guyana Rice Development Board (GRDB) General Manager, Mr. Jagnarine Singh, said it is due to a three million tonnes shortfall of the grain on the international market.

But he assured yesterday there is adequate supply for local consumption.

The cost of a bag in Georgetown rose from $5,000 last month to about $6,000 this month and the rise varies at different locations.

Agriculture Minister Robert Persaud said local farmers, millers and exporters are working feverishly to meet the growing demand on the global market and, based on trends, the first crop this year will be larger than the second last year.

He also attributed the hike in rice prices here to the rising costs of fuel and fertiliser imported into Guyana.

Veteran consumer advocate Eileen Cox agreed with Minister Persaud but lamented that the Consumers’ Association can do nothing about the situation.

Government, last year, waived the Value Added Tax (VAT) on fertiliser and has been adjusting the Excise Tax on diesel to maximise benefits to key stakeholders.

Meanwhile, rice exports from this country in 2007 surpassed that of the previous year and was highest in the last ten years.

The Ministry said the amount reached close to 250,000 tonnes, valued at

US$75M, as compared to 183,705 tonnes which earned US$49M in 2006.