MINISTER of Agriculture, Zulfikar Mustapha, has reaffirmed the government’s unwavering commitment to Guyana’s rice farmers, reiterating that under the leadership of President Dr. Irfaan Ali, the People’s Progressive Party/Civic (PPP/C) Government will “never abandon rice farmers.”
Speaking at a packed meeting held at the Anna Regina Secondary School on Saturday, the minister revealed that over $838 million has been invested in the rice industry in Region Two (Pomeroon–Supenaam). The funds, he explained, were directed towards improving rice prices, distributing chemicals and fertilisers, and providing other critical forms of assistance to farmers.
Minister Mustapha was accompanied by Minister within the Ministry of Public Works, Madanlall Ramraj and Director General of the Ministry of Agriculture, Dhaneshwar Deonarine.
The Agriculture Minister told farmers that the government was aware of their major concerns and continues to explore new ways to bring relief and ensure profitability. He noted that yields have risen significantly, moving from an average of 5.5 tonnes per hectare to 6.5 tonnes, with Essequibo farmers enjoying record yields. This, he said, demonstrates the progress being made in the sector.
Minister Mustapha proudly highlighted that in 2024, Guyana produced a record 725,282 metric tonnes of rice, and the government has set an ambitious target of 810,000 tonnes for 2025. He attributed this success to improved rice varieties, better infrastructure and processing facilities, government policy support, and farmer training programmes.
Major subsidies and support measures
According to Minister Mustapha, the government has been implementing a fertiliser subsidy programme to reduce the cost of production. Farmers currently benefit from one bag of fertiliser per acre, with transportation and other associated costs fully absorbed by the State.
He detailed that 208,000 bags of paddy, valued at approximately $40 million, were ferried across by the government, while an additional $349 million was spent on subsidising the price of fertiliser by $300 per bag.
“We never said rice is a private business,” Minister Mustapha declared, stressing that rice is a national priority and the Government will continue to invest heavily in its sustainability.
Meanwhile, Minister Mustapha acknowledged that many farmers rent land at high costs, while paddy prices currently range between $2,300 and $3,500 per bag, depending on quality and variety. Region Two, he said, harvested close to one million bags of paddy, with the Guyana Rice Development Board (GRDB) purchasing 77,000 bags last year to support market stability.
He also recognised the challenges faced by farmers due to limited milling capacity and long waiting lines, particularly at Golden Fleece Rice Investment (GFRI). To ease these bottlenecks, the government is advancing plans for a $2 billion government-owned drying and storage facility in Region Two. The facility, which will be established at Onderneeming, is currently at the evaluation stage, will store up to three million bags of paddy, significantly reducing post-harvest losses and providing greater security to farmers.
Minister Mustapha announced that the government was also exploring the establishment of an interest-free commercial bank to assist rice farmers with access to credit and capital for expansion. Additionally, new international markets were being pursued in Mexico and Qatar to secure better prices for local farmers.
“We want our farmers to get good prices. The last time I met with Region Two millers, one of them — Mr. Hakh — agreed to increase the $2,300 price by another $200 for all farmers who sold to him for the entire crop,” Mustapha shared.
Meanwhile, Minister Ramraj noted that the Ministry of Public Works has been playing a major role in supporting the rice industry by facilitating transportation. He said over 200,000 bags of paddy have been transported via the new Bharrat Jagdeo Demerara River Bridge, and additional ferry trips were arranged from Good Hope using the MV Hercules to ensure timely delivery.
Farmers expressed their appreciation for the engagement, describing the meeting as “timely and reassuring.”