SURINAME INTRODUCES RICE REGULATING MEASURES

UNCLAS PARAMARIBO 000200 STATE FOR WHA/CAR JROSHOLT EEB/TPP/ABT/ATP FOR JSPECK SIPDIS E.O. 12958: N/A TAGS: EAGR EAID ETRD ECON BTIO NS SUBJECT: SURINAME INTRODUCES RICE REGULATING MEASURES REF: A. PARAMARIBO 177 ¶B. SECSTATE 39410 ¶1. (U) Summary. The Government of Suriname implemented a new export license requirement on rice exports. Border inspections will include a search for rice being smuggled out of the country. Local rice producers and exporters have criticized these new measures, stating local demand is only projected to be for 20,000 tons of the 55,000 tons available. End Summary. ¶2. (U) The Government of Suriname implemented several new measures to protect the local rice supply. On April 29, the Ministry of Trade and Industry instituted a license requirement for rice exports. Once a fully liberalized sector, exporters must now obtain licenses from the Ministry prior to exporting rice. Licenses will only be granted after the local demand quota is met. ¶3. (U) The Government of Suriname will intensify inspections at the official border crossings at Albina (with French Guiana) and Nieuw Nickerie (with Guyana) in order to combat rice smuggling, Minister Kermechend Raghoebarsing of the Ministry of Agriculture, Animal Husbandry and Fisheries announced the week of May 5. Inspectors at the unofficial "backtrack" border crossing at Nieuw Nickerie will also be on the lookout for rice. The Minister suggested there could also be inspections of schooners departing Paramaribo to ensure they did not take rice in excess of their crews' needs. ¶4. (U) Rice farmers and exporters criticized the new export license system, since there is no rice shortage in Suriname. In early April, farmers and exporters had announced that Suriname has approximately 55,000 tons of rice available until the September harvest, and local demand was not expected to exceed 20,000 tons. ¶5. (U) Minister Raghoebarsing held talks with rice millers and exporters and explained the government wanted to monitor the export streams of rice. The Minister stated that export monitoring and inspections to prevent rice smuggling are a short-term response to guarantee local supply in light of rice shortages elsewhere. GENTON