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2. Period II , 1998 to 2007. Now came a withdrawal of State involvement, marked by massive imports of poor quality rice at cut rates, which led to problems for the sales of local rice and a dilapidation of tools and implements. However, the crisis also generated some windfalls. The producers started organising themselves in order to make their voice heard and set up the National Union of Rice Growers of Burkina (UNPR-B) in December 2005. In addition a new occupation came about in the rice districts as well as in neighbouring towns: women workers who have started parboiling paddy rice. They have been able to rescue the rice trade in several rice districts of the country. When they became aware of the fact that traders no longer came out to buy paddy rice at the fields, they started processing the rice on their own and selling it at a better price to consumers in the cities. Today rice growers and women workers claim their right to process rice on their own. 3. Period III : The present situation (2007 – 2008). This is a good time for producers. However, it has not come as a result of any decision or action by the Government, but is related to the world market price of rice. After his review of these three stages, the President of the UNPR-B drew a number of conclusions, the most important in our view being : 1. A demand for the adoption of a guaranteed minimum price for paddy rice at 175 CFA francs/kg; 2. A demand to leave processing of paddy rice to the women workers for parboiling. They have already set up organisations which are now getting structured and strengthened at an impressive pace. The president of rice processing women workers in Bama has now promised consumers that they will be able to buy parboiled rice at 9000 CFA francs a 25kg bag, if the women can get paddy rice at 175 CFA francs/kg. (At present a bag of imported husked rice costs at least 10 000 CFA francs). 3. Consumers have thus been given a assurance that they will be able to find good quality rice at an affordable and lasting price level, ( provided there is a guaranteed minimum price). There would be a great deal more to say about the Campaign for Economic Justice, and we will therefore report on this in another news bulletin shortly. In order to point out the full importance of the new initiative, I wish to draw a few conclusions from the remarkable fact that there is now a formal demand from the UNPR-B for a guaranteed minimum price. Apart from the case of cotton, which is an export crop, this is, I think, the first time that Burkina farmers have demanded a guaranteed minimum price for a farm product. In spite of the fact that this has been current practice in most countries around the globe! At a time when the ECOWAS is in the midst of internal and external negotiations and when the country is just about coming out of a severe food crisis, the political leaders would be wise in taking such a demand into account. (See also n°s 300 and 302 of abc Burkina on this topic). What would be the right step to take by the politicians in order to give producers such a guarantee? They will have to shelter local rice production from the absurd fluctuations on the world market and the never ending variations in the Euro-dollar exchange rate. To achieve this several measures must be taken. 1. Rice must be put on the list of sensitive products, in particular in the Economic Partnership Agreement that the ECOWAS is now preparing with the European Union. According to the information we have, this could be done without too many difficulties. 2. But rice must also be protected from world market fluctuations. At the present time the world market price for rice is very high and the member states of the ECOWAS are not keen on setting a heavy tax on imported rice. But if the present rate of 10% import tax is maintained, what can the ECOWAS do when the price crashes again on the world market? Not much, if the ECOWAS does not anticipate such a move and demands a right, at the World Trade Organisation, to introduce variable import taxes. Who could forbid the ECOWAS to protect its agriculture by variable import taxes? Who could forbid the ECOWAS to offer its rice growers a guaranteed minimum price? And therefore to set an “entry price” for imported rice? Surely not Japan, which is itself applying a 500% import duty on foreign rice ! Koudougou, October 19th 2008 Maurice Oudet Director, SEDELAN |
