Gov’t intervention leads to better prices for rice farmers

-following meeting, Berbice rice millers raise price to $3,000 per bag

–amidst unfavourable global market conditions

PRESIDENT Dr. Irfaan Ali on Wednesday met with rice farmers in the Upper Corentyne area as part of a series of nationwide engagements aimed at addressing current challenges in the rice industry and charting a path forward together.

During the discussions, President Ali outlined the complex situation confronting the sector, shaped by global oversupply, falling prices, dumping, and outstanding payments owed to millers by external markets.

He emphasised that while the environment is difficult, the government remains fully committed to standing with farmers, ensuring their livelihoods are protected, and safeguarding the long-term sustainability of the rice industry.

The President highlighted that farmers have already benefitted significantly from government interventions, including billions in direct support, the supply of fertiliser, removal of fuel taxes, and major investments in drainage and irrigation infrastructure. These initiatives have reduced production costs, increased yields, and offered greater protection against climate-related risks.

He explained that storage capacity is now a key national priority, with plans to build facilities capable of stockpiling up to five million tonnes of rice nationally. This, he noted, will help stabilise the market, protect farmers’ investments, and ensure continuity in production despite global uncertainties.

President Ali also called attention to the need for diversification within the industry. He announced that government will work with experts to develop agro-business models that integrate high-value alternatives alongside rice cultivation. The proposal envisions one acre out of every ten being dedicated to ventures such as aquaculture and processing, providing farmers with additional income streams and greater financial security.

At the same time, the government has been engaging millers and international markets to address price concerns. Recent meetings have already yielded increases in the price per bag, and discussions are ongoing to further improve returns to farmers.

Efforts are also being made at the diplomatic level to unlock payments owed to local millers by overseas markets, thereby easing cash flow pressures and strengthening their ability to pay farmers promptly.

President Ali reminded farmers that the People’s Progressive Party/Civic has always been the strongest and most consistent advocate for the rice industry, and urged them not to allow themselves to be misled by political opportunists. He reaffirmed that this government will continue to work in partnership with farmers and millers, ensuring that the entire industry thrives. “I am here to tell you that we are going to work, because we love you and we genuinely want you to succeed.”

The meeting also addressed key operational issues raised by farmers, including grading concerns, land rental costs, and the maintenance of drainage and irrigation systems.

In response, the President committed to the establishment of farmers’ committees to monitor and sign off on works in canals, as well as the rollout of new technology for real-time monitoring of infrastructure projects.

Over the next two weeks, additional consultations will be held across the country with farmers, millers, and stakeholders. These discussions will culminate in a detailed report to Cabinet, which will guide new interventions to secure the industry’s future.

President Ali closed the engagement by assuring farmers that they are not alone. The government, he stressed, is working around the clock to ensure that rice cultivation remains profitable, competitive, and sustainable, with new investments and opportunities on the horizon.

Meanwhile, Minister of Agriculture, Zulfikar Mustapha who was also present at the meeting, in providing an update, revealed that two millers in Berbice have decided to increase their price to $3,000 per bag following meetings with himself and other senior government officials.

Noting that they have met with millers, he added,  “We also are very concerned about the decrease in the price… The rice millers are saying the crop for this year, the price has decreased tremendously because of the market overflow and that is why they are now holding out…”

Emphasising that the engagement will continue, he said, “We are talking to the rice millers again to go back to the price we had or increase the price so this is a work in progress and we will meet with them again. The government is very concerned, the government wants y’all to have maximum price for the paddy, maximum price, that is why we are doing all of these things.”

The minister stressed that those meetings with millers are extremely important and will continue in the coming days.