$2.1B paddy subsidy rolled out as gov’t boosts support to rice farmers
Minister of Agriculture, Zulfikar Mustapha speaking to rice farmers in Region Five on Wednesday
Minister of Agriculture, Zulfikar Mustapha speaking to rice farmers in Region Five on Wednesday

By Bebi Shafeah Oosman

THE People’s Progressive Party/Civic (PPP/C) government has launched a $2.1 billion assistance programme to support rice farmers, providing a $300 per bag subsidy for paddy as part of ongoing efforts to strengthen Guyana’s agricultural sector.
Agriculture Minister Zulfikar Mustapha oversaw the start of the subsidy distribution in Region Five on Wednesday, emphasising that the initiative is a key commitment from President Irfaan Ali to ease farmers’ financial burdens and ensure the long-term sustainability of the rice industry.
The initiative fulfils a commitment made by President Dr. Mohamed Irfaan Ali, ensuring that rice farmers receive $300 per bag of paddy as support to offset production costs and stabilise incomes. As part of this exercise, approximately $480.5 million was distributed to 1,618 rice farmers in Region Five (Mahaica–Berbice).
This intervention forms part of a wider national programme, representing a total government investment of approximately $2.1 billion, aimed at sustaining rice production, enhancing food security, and reinforcing the resilience of one of Guyana’s most important agricultural sectors.
“As a government, we are supporting the farmers,” Mustapha told a gathering of rice producers, stressing that the support goes beyond budget allocations. “We are here to deliver on a commitment made by the President of the country, and we are here to fulfill another promise made by the PPP/C Government.”
The Agriculture Minister stressed that the government recognises the importance of agriculture to Guyana’s development, noting that the sector has undergone significant transformation in recent years.

Mustapha, has reaffirmed the government’s strong commitment to farmers in Region Five, pointing to extensive rehabilitation of agricultural infrastructure and significant financial investments that continue to benefit the sector.
Addressing a gathering of rice farmers, Minister Mustapha said the People’s Progressive Party/Civic government has consistently stood with farmers through both budgetary and direct financial support. “As a government, we are supporting the farmers,” Mustapha stated, emphasising that support has gone beyond annual budget allocations. “We are here to deliver on commitments made by the President of the country, and we are here to fulfill another promise made by the PPP/C Government.”
The agriculture minister underscored the importance of agriculture to Guyana’s overall development, noting that the sector has undergone tremendous transformation over the years. According to Mustapha, Guyana has now achieved global recognition for its agricultural potential. “Today, Guyana is ranked number one in the world in terms of agriculture. Out of 186 countries studied by an international university, Guyana was ranked number one in its ability to produce all seven food groups required for food security. That is a tremendous achievement for us,” he said.
He credited rice farmers for playing an integral role in achieving this milestone but cautioned against misinformation and unfounded criticism. “Sometimes we have to be careful because we have naysayers who do nothing for the development of this country. They go around bad-talking the government, bad-talking the minister, and making accusations they cannot prove. Unfortunately, at times, we tend to believe them,” Mustapha told the farmers.
Turning to investments made in the rice industry, the Minister described them as “tremendous,” particularly within the Mahaica-Mahaicony-Abary (MMA) Scheme, the largest agricultural scheme in the country. He noted that almost 120,000 acres of land are available for rice cultivation in Region Five, along with lands designated for cattle rearing and other crops.
Mustapha explained that when he assumed office as Minister of Agriculture, much of the machinery assigned to the MMA Scheme was in a dilapidated state. Today, however, the situation has changed significantly.
“We now have a fleet of almost eight excavators assigned to the area, and that will continue to increase. We have other pieces of machinery also coming to the scheme,” he said. “We are seeing more land being opened up, new structures being put into operation, and hundreds of kilometres of canals and dams being maintained.”
The minister said government remains focused on building a resilient rice industry by reducing the cost of production so that Guyana can remain competitive on the international market.
“As a responsible government, we are working to make this industry one of resilience, an industry where we can bring down the cost of production and compete internationally with world prices,” he stated.
He also highlighted interventions by the Guyana Rice Development Board (GRDB), noting that $600 million the first investment was made to subsidise the price of paddy in 2025 – an initiative that had to be strongly defended in Parliament.
Further investments have also been made in drying floors, the rehabilitation of the Rice Research Station at Burma, and the rehabilitation and expansion of seed paddy facilities in Region Five and at Black Bush Polder. Additionally, significant resources have been directed towards improving drainage and irrigation systems, which remain critical to the sustainability of rice production.
Minister Mustapha reiterated that the PPP/C Government remains committed to strengthening the rice industry and ensuring farmers continue to benefit from policies and investments aimed at long-term growth and food security.

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