Global grain slump triggers lower paddy prices locally – Agri Minister

Agriculture Minister Zulfikar Mustapha had remarked that lower grain prices on the world market have affected the prices being received for paddy locally.

Mustapha reiterated the point on Saturday while addressing farmers and residents at Shieldstown, Region Five (Mahaica-Berbice), where he outlined several developments and interventions in the agriculture sector. He reminded those at the meeting that it was as a result of lowering prices globally that prompted the Government to provide almost $2.7 billion in support to rice farmers in Guyana.

“Because of the low price for grains on the world market, our prices for rice and paddy have been influenced by the world market price,” Mustapha told the gathering.

He said President Dr Irfaan Ali subsequently met with rice farmers in April, and an intervention was developed to provide financial support to producers.

“The President met with the rice farmers in April of this year, and we came up with a solution,” the Agriculture Minister said.

Mustapha said almost $2.7 billion was eventually provided to rice farmers under the intervention.
“Almost $2.7 billion was given to the rice farmers in this country,” he said.

While international market prices have presented challenges for the industry, Mustapha pointed to increased production in recent years.

According to the Minister, rice production moved from approximately 500,000 tonnes in 2020 to 825,000 tonnes last year.

“We have seen rice production increase from 500,000 tonnes in 2020 to 825,000 tonnes last year, and I am hoping that that will increase this year,” Mustapha said.

He also pointed to the level of Government spending on agriculture, saying investment in the sector has increased significantly over the past six years.

“We’ve seen the investment over the years, from $18 billion in 2020 to $106 billion in 2026,” the Minister said.

Mustapha used the figures to underscore what he described as the continued expansion of Guyana’s agriculture sector and the level of support being provided to producers.

The Agriculture Minister said the Government has introduced several forms of assistance across the sector in recent years, with the intervention for rice farmers being aimed at cushioning producers from the effects of lower international grain prices.