–Mustapha says no ‘downturn’ in production

THE government is continuing its efforts to secure better prices for rice farmers and expand access to international markets in West Africa and the Middle East, as the country navigates the global glut in the industry.
Agriculture Minister, Zulfikar Mustapha, told reporters, on the sidelines of the launch of Agriculture Month on Wednesday, that millers and farmers are actively being engaged and  outlined a series of interventions aimed at stabilising prices, reducing production costs, and ensuring sustainable incomes for farmers.
“With intervention, the price has increased from $2,500 to $3,000 per bag for paddy and I am hoping I can get some more from Essequibo; they are now purchasing at $2,300 a bag,” the minister said, noting that in some parts of the region the price has increased to some $3,500, with buyers offering better prices.
Looking ahead, projections indicate that approximately 500,000 tonnes of rice could be available for export over the next three months.
In anticipation, the Ministry of Agriculture, in coordination with the Ministry of Foreign Affairs, is actively pursuing new international markets. The President, Dr. Irfaan Ali has also been engaging directly with foreign governments in an effort to secure export opportunities and ease domestic market pressures.
To this end, the minister pushed back at those who have suggested the scaling back of production, “I don’t see a downturn in production, as a matter of fact this year we may produce another 100,000 hectares than last year.”
“All those investments and all those injections we are making, I am hoping we can reduce the cost of production,” Mustapha added.
Over the past year, authorities have been working closely with rice farmers, millers, and exporters to manage the current surplus and improve profitability across the sector. As part of these efforts, the government injected approximately $1.9 billion into the market to support pricing, contributing $300 per bag of paddy sold to millers.
In addition to price support, the government has distributed around $2 billion worth of fertiliser to farmers and is now collaborating with them to produce seed paddy at significantly lower costs. These investments are part of a broader strategy to drive down production expenses and enhance competitiveness.
It was previously reported that the rice industry’s target for the first crop of this year had already been surpassed, marking a strong start toward meeting the overall national goal of 824,000 tonnes for 2025.
The country’s production had reached a record high in 2024. The yield increased from 5.7 tonnes in 2020 to 6.6 tonnes per hectare in 2024 for the last four years.
This incremental increase in rice production has been ongoing since 2021, when production was at 559,789 tonnes. In 2022, it increased to 610,595 tonnes, and 653,706 tonnes in 2023.