The Bill amends the Rice Marketing Act 1983 to deregulate the NSW rice industry by July 1, 2025.
It means Ricegrowers Australia (SunRice) will no longer be the only company permitted to export rice overseas.
Ricegrowers' Association of Australia president Peter Herrmann said while the passing of the Bill marks the end of almost 100 years of rice vesting in NSW, it marks a new era for the Australian rice industry and for RGA members.
"Although the change is not in keeping with our historic policy position, the RGA believes the removal of vesting arrangements can provide new opportunities for Riverina rice growers as we traverse economic and federal water reform challenges,“ he said.
“We thank the minister for collaborating with us once the findings of the ABARES report had been considered.
“The RGA looks forward to ongoing engagement through the stakeholder reference group to ensure a smooth transition brought about by this Bill.”
NSW is Australia’s rice production powerhouse, with 99 per cent of the nation’s rice grown in the state, contributing a farm gate value of $219 million in 2022-23.
The legislation ends the statutory controlled single rice export marketing (‘vesting’) arrangement and will open up the market to a more diverse choice for how rice growers sell and market their rice.
The changes are being made following extensive engagement from NSW’s rice growers requesting an opening up of the market by deregulating the historical restrictive selling arrangements.
The NSW Government’s legislation will initiate a series of practical steps for transitioning the way rice is marketed to consumers and international export markets, and cover the following:
• The emerging Northern Rivers rice growing region will no longer be restricted by the current vesting arrangements from September 1, 2024, allowing their rice crops from 2024/25 to be sold into domestic and international markets without restriction.
• Vesting for the Southern NSW growing region will end by July 1, 2025, allowing the 2025/26 crop onwards to be exported free of the vesting arrangements
• The Rice Marketing Board that has overseen the regulated market will be wound up by July 1, 2026, with any residual funds to be reinvested to benefit the NSW rice industry.
To enable a successful transition for growers, the NSW Government’s stakeholder reference group will collate views on the following important issues:
• Research and development opportunities to support alternate supply chains;
• Ensuring seed supply is maintained for all rice growers;
• Unwinding the affairs of the Rice Marketing Board once vesting ends;
• Investigating regional development opportunities; and,
• Mechanism to deliver any residual assets of the board back to benefit the rice industry.
“The RGA will form part of the Rice Transition Group’s Stakeholder Reference Group and commits to working closely with the government and all rice industry stakeholders to ensure a smooth transition for our members,” Mr Hermann said.
“RGA welcomes the commitment given by the government to ensure any residual funds from the Rice Marketing Board will be applied for the benefit of New South Wales growers and the New South Wales rice industry.”
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