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Tradewatch
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The Official E-Newsletter of the Caribbean Export Development Agency • Vol.9 No. 3, 2015
CAriBBeAn exporters oF tHe YeAr 2015
Nand Persaud: Leading the Way in Green Energy
The cost of energy in the Caribbean is the largest barrier that
manufacturing firms face when dealing with price competitiveness in the
international market, however one company in Guyana using its waste
products to defy these odds.
Rice shell, accounting for 22% of the rice crop, is a waste product in the
manufacturing process of rice, but Nand Persaud and Co. Ltd (Nand Persaud)
has found a way to turn that waste product into energy to supplement their
energy consumption. Ashish Khandage, the business development officer,
met with The Caribbean Export Development Agency (Caribbean Export) to
discuss the operations of the company. “Last year 19,000 metric tonnes of
rice shell was gathered in the milling process of the rice. Approximately
60% of this waste product was used to create energy [46 million units of
electricity] for the plant”.
Winner of the Caribbean Export’s Green Exporter of the Year 2015 Nand
Persaud was nominated by the manager of their Insurance Company. “We
were short listed for two awards, The Caribbean Exporter of the Year and the
Green Exporter of the Year and we won the Green Exporter Award” stated
Ashish. “We didn’t develop the green technology with the intention of
receiving any form of recognition, however when the awards were brought
to our attention we decided that it was a good opportunity to show the
world what we were doing” professed Ashish. “This award means a lot to
Guyana, we are the only company in the country that has been honored
in this way, so this is not only an award for us, it is an award for the entire
country”.
Wood is mostly used in rice mills as the main source of energy in the
production process, along with oil and electricity. According to world
estimates, the company is saving 300 tonnes per hector of trees from
deforestation each year. “We are trying to encourage other companies
to follow suit” stated Ashish. Guyana is a rice producing nation and
approximately 70% of the rice mills do not incorporate this technology. “We
mentor them and show them what we are doing so that they can benefit
from it as well”. We definitely owe it to the environment and we are looking
forward to the positive effects that this initiative will have”.
The company is looking into additional alternative energy resources,
and this award has encouraged them to continue their pursuit of green
technologies with a fresh and renewed sense of zeal. A feasibility study is
currently being conducted in Guyana to determine whether it is practical
to employ alternative energy resources such as wind and solar energy,
however Ashish believes that they will need full support from the
government of Guyana, and since the country doesn’t have the
technical infrastructure to do these kinds of projects on their own,
they will also need the assistance of foreign agencies to implement
these projects.
“In Guyana almost all electricity produced is fueled by oil, so
we would like to substitute that for a much cheaper and renewable
alternative energy resource to power the plant” declared Ashish. The
cost of production of rice is higher in Guyana than for its competitors
and this is because the cost of electricity is higher than in other rice
producing nations. “If the cost of electricity was lower we would
be able to reduce production cost and as a result pay the farmers a
better price”. The company is not only looking to produce energy for
its specific use, but to provide renewable energy to others as well. “It
is a first time initiative in the Caribbean, and if we can successfully
provide a better alternative to energy, more industries will come on
board” stated Ashish.
Nand Persaud started its operations 21 years ago with a
production of one metric tonne per hour of rice. Now they produce
16 metric tonnes per hour of parboiled and white rice and they have
recently purchased a bigger parboiled rice machine which will soon
be put into production. The company’s total sales volume last year
was over 67,000 tonnes of which they exported approximately 52%
of it to 19 different countries around the world under the Karibee
brand. Their export sales developed organically over time and now
with the increased capacity of this new machine, they anticipate
that they will increase their export sales by 30%. “There is a greater
demand for parboiled rice over white rice in all the existing markets”,
professed Ashish “so we are increasing our supply to meet the
demand that already exists”.
Despite their impressive export sales, the company still faces the
challenge of high shipping costs particularly within the region. High
transportation costs coupled with the infrequency of ships travelling
to smaller Caribbean islands has stifled their regional trade. Their
success in the international market however is credited in part to
of the improvements in the ease of doing business through trade
agreements between the EU and the Caribbean such as the Economic
Partnership Agreement (EPA).
(TW)