–outlines billions in support
THE Ministry of Agriculture has rejected recent claims about the state of Guyana’s rice industry, calling statements made by We Invest in Nationhood (WIN) Member of Parliament Gobin Harbhajan “extremely misleading” and disconnected from the realities of the industry.
In a statement on Thursday, the ministry said the assertions reflect either “a complete lack of understanding” of how the industry operates or a deliberate attempt to misinform rice farmers for political mileage.
The ministry also dismissed suggestions of widespread crop losses due to rainfall, making it clear that no official reports of lost acreage have been recorded to date.
“To date, no acreage has been officially reported as lost,” the ministry stated, noting that fields are being closely monitored by extension officers from the Guyana Rice Development Board and that proper assessments can only be conducted after floodwaters fully recede.
INSURANCE SAFETY NET IN PLACE
Against increasing climate-related risks, the government, under the leadership of Dr Irfaan Ali, has already rolled out a crop-insurance mechanism aimed at safeguarding farmers.
According to the ministry, 4,433 rice farmers are currently registered under the programme, with payouts already triggered in previous rainfall events once thresholds were exceeded.
“Earlier rainfall events have resulted in farmers already benefitting from a payout, with two additional payouts pending,” the statement noted.
The ministry underscored that the government does not set paddy prices, emphasising that Guyana operates within a global commodity market.
“Paddy is sold to millers, and those millers, in turn, sell rice on the international market where prices are dictated by global supply and demand,” the ministry explained, adding that any suggestion otherwise is “fundamentally incorrect.”
It further pointed out that Guyana is a “price taker,” globally, with increased production and stockpiles in major exporting countries such as India, Vietnam and Brazil placing downward pressure on prices.
Since returning to office in 2020, the government has implemented a series of interventions to stabilise and expand the rice industry.
These include more than $3.1 billion in fertiliser support, over $96 million in seed-paddy distribution, and targeted measures to address pest infestations. When prices declined during the first crop of 2025, the government intervened with a $300 per bag subsidy, ensuring farmers received no less than $4,000 per bag, amounting to approximately $1.9 billion in direct support.
The ministry said these measures have contributed to record production, with Guyana producing 725,282 tonnes of rice in 2024 and 810,299 tonnes in 2025, with output projected to exceed 820,000 tonnes in 2026.
Beyond financial injections, the government is advancing a broader strategy to strengthen resilience within the sector.
Key initiatives include expanded drainage and irrigation infrastructure, construction of additional canals in Regions Three, Five and Six, improved drying and storage facilities, and upgrades to farm-to-market roads.
Farmers are also being encouraged to diversify, converting portions of rice acreage into high-value ventures such as aquaculture, livestock, and crops including coconuts, spices, cocoa and coffee.
‘POLITICAL OPPORTUNISM’ REJECTED
The ministry was clear in its criticism of the WIN MP’s remarks, describing the narrative of a failing rice industry as “political opportunism at its worst.”
“Mr Harbhajan speaks with a confidence that is as misplaced as it is alarming. Such statements are designed to mislead rather than inform, and they undermine the confidence of farmers who deserve accurate and responsible communication,” the statement said.
While acknowledging ongoing challenges such as flooding and global price volatility, the ministry maintained that the government’s response has been “strong, targeted, and sustained,” positioning the industry for continued expansion.
“Guyana’s rice industry will continue to expand,” the statement concluded, reaffirming the administration’s commitment to investing in technology, improving drainage systems and expanding cultivation nationwide.
