Rising costs of rice production, Govt’s $3B support discussed at Reg.  5 meeting

Rice farmers in Region Five (Mahaica-Berbice) on Saturday raised concerns over increasing combine harvesting charges, rising fertiliser prices and low yields during an outreach at Onverwagt hosted by Agriculture Minister, Zulfikar Mustapha as Government moves ahead with its recently announced rice support programme.

Several farmers used the meeting to question whether the financial assistance being offered by Government would be enough to offset rising production costs and losses being experienced during the current crop.

One farmer, Muhammad Ali, questioned the structure of the Government’s payout system, noting that farmers cultivating 50 acres and below are expected to receive $15,000 per acre, while those cultivating more than 50 acres will receive $10,000 per acre. Ali said it is an unfair system and suggested that Government instead pay $15,000 per acre for the first 50 acres cultivated by all farmers, with the lower $10,000 rate applying only to acreage above that threshold.

However, responding to the concern, Mustapha said the formula had already been finalised by President Dr Irfaan Ali and could not be changed. “The President already pronounced on the matter,” the Minister told the gathering while explaining that Government had to establish a fixed structure for the assistance programme. He pointed out that farmers had given their support for that payment system when they met with the head of State when he outlined the Government’s planned support for the rice industry.

The agriculture minister maintained that the support was part of a wider effort by Government to assist rice farmers amid declining global rice prices and increasing production costs. Meanwhile, another farmer, Alicia Shephard of Mahaicony Branch Road, raised concerns that combine operators had increased harvesting charges by as much as $10,000 per acre, significantly reducing the benefit farmers would receive from the Government support.

However, farmers and operators explained to this publication that combine operators were also facing mounting operational challenges because of poor yields and rising fuel prices. During the previous crop, many farmers reported harvesting more than 30 bags of paddy per acre, with combine operators commonly charging about $300 to $400 per bag harvested. Because of the higher yields, farmers were often already paying in excess of $10,000 per acre for harvesting.

This crop, however, prolonged rainfall and early flooding in several farming areas have reportedly reduced yields in some fields to between 12 and 18 bags per acre. Farmers explained that if combine operators continued charging solely on a per-bag basis under the present conditions, operators would struggle to earn enough to cover operational expenses, particularly with fuel prices increasing sharply. As a result, operators reportedly moved towards charging a flat rate of about $10,000 per acre in an effort to offset the lower yields and maintain operations.

Additionally, another farmer, Joseph Ramlall, also questioned whether Government would intervene to help reduce fertiliser prices, which farmers say have risen sharply over the past year. The concern comes amid continued increases in global fertiliser prices linked to higher energy costs, supply disruptions and geopolitical tensions affecting international markets. In response, Mustapha said Government was already engaging fertiliser suppliers and examining ways to reduce costs for farmers while also encouraging the use of alternatives such as nano fertilisers.

The Minister also defended Government’s interventions in the rice sector, pointing to measures implemented over the past two years, including the $300 per bag assistance, fertiliser support, and reductions in drainage and irrigation as well as land rental charges.

According to Mustapha, Government remains committed to reducing production costs and increasing profitability within the sector. He also urged farmers to diversify into livestock and high-value crops, noting that Government was investing heavily in drainage infrastructure, canals, roads and the opening of new agricultural lands within the MMA Scheme.

Government recently announced a $3 billion support package for rice farmers for the first crop of 2026, with farmers cultivating 50 acres or less set to receive $15,000 per acre, while those cultivating more than 50 acres will receive $10,000 per acre.