Rice farmers threaten NFM with lawsuit

Rice farmers may sue National Flour Mills (NFM) for non-payment of a $1.9 million debt accrued over the past year, attorney Gerald Ramdeen said yesterday at a news conference at his chambers in Woodbrook.

He said the sum is owed via 100-plus invoices to 16 farmers who are struggling financially as the delay in payment has left them unable to pay creditors. Ramdeen claimed the farmers’ plight could blunt Government’s call for people to venture into areas of economic diversification.

However, NFM CEO Kelvin Mahabir told Newsday the NFM’s last payment to rice farmers was in June and it will pay further sums upon receipt from the ministry. He said he did not specifically know of this $1.9 million debt to the 16 farmers.

Ramdeen displayed a pre-action protocol letter dated December 11 to NFM chairman Nigel Romano warning of a lawsuit for breach of contract if farmers are not paid by Friday. Copies were sent to Prime Minister Dr Keith Rowley, Agriculture, Land and Fisheries Minister Clarence Rambharat and Attorney General Faris Al-Rawi.

The document said the farmers made many efforts both individually and collectively to have NFM pay, but promises from the Ministry of Agriculture were ultimately, “empty and vacuous.” Ramdeen said farmers owe the Agricultural Development Bank (ADB) and suppliers of chemicals and machinery.

Some have had to lay off workers. “Rice has been delivered to the NFM but they gave absolutely no response with respect to these people. If they are not paid by Friday we are definitely going to court,” Ramdeen.

Mahabir told Newsday that NFM has been in talks with the Ministry of Agriculture over further payments. “As soon as we get the release, within 24 hours, we’ll make out cheques to them,” Mahabir said. The NFM CEO said he is aware farmers need a constant cash-flow and will be impacted by delays in payment, but he has received no notification of any “major concern” from NFM’s Finance Department.