Dionne Rose, Business Reporter

Jamaica and Guyana have reached an understanding that clears the way for Kingston to source world markets for 9,000 tonnes of rice outside of Caricom.

Karl Samuda, minister of industry and commerce, made the announcement to assure the country that there was unlikely to be a rice shortage in the near term.

The rice shipment is due in a week.

Prime Minister Bruce Golding and Guyanaese President Bharrat Jagdeo left a weekend meeting promising to talk in an attempt to reach a compromise on rice and avert a clash between the two trading partners.

Another rice producer, Suriname, said at the weekend meeting that it would have supported Jamaica's push for a waiver of the 25 per cent Common External Tariff (CET) that would clear the way for the island to buy rice outside the region, but only if the Golding/Jagdeo meeting failed to reach compromise.

Conditionalities

Samuda

Yesterday, Samuda, speaking in Parliament, said an agreement had been reached between the two country leaders, but that Jagdeo had conditions.

"Following those discussions, I had a discussion later with President Jagdeo who advised us that he would not oppose our application for a suspension of 9,000 tonnes, which are on the way and due to arrive on May 20," said Samuda.

But Guyana gave way on the CET only because it got an agreement for a guaranteed market.

"We would, in turn, give an assurance that ... out of the 100,000 tonnes required by the country, we would give a guarantee to purchase from Guyana 60,000 tonnes per annum and on that basis, he would not object," said Samuda. "He further indicated that he gave his undertaking that within two weeks, Jamaica would be supplied with 14,000 tonnes of rice from Guyana, in addition to the nearly 3,000 tonnes that are now on its way to Jamaica."

Build inventory

Samuda also told Parliament that the 9,000 tonnes of rice coming from the United States would help build up the country's inventory of rice, a commodity that has become increasingly expensive on the world market as countries hold on to their domestic supplies, fearing shortages.

Myanmar's troubles have added to those fears.

Jamaica and Guyana had been at odds since last year when the country complained of a shortage of rice from its usual supplier, Guyana.

The new administration had charged that Guyana was not supplying enough to meet local demand, but Guyana denied this.

Last year, a rice shortfall from Guyana forced Jamaica to buy about 17,000 tonnes (15,400 metric tonnes) from the United States.

dionne.rose@gleanerjm.com