$1B for rice storage; $430M to boost rice sector in 2026 Budget

Finance Minister Dr Ashni Singh, in presenting the 2026 National Budget to the National Assembly, outlined continued Government support for Guyana’s rice subsector, with plans to expand production, improve yields and secure new markets. According to Dr Singh, Government initiatives over the past five years have steadily increased rice output through a combination of measures, including the distribution of climate-resilient, high-yield varieties, construction of drying floors, research into value-added products, access to export markets, direct financial support to farmers and millers, and the introduction of a crop insurance facility at no cost to farmers. Looking ahead, the Government intends to invest in seed processing facilities, establish rice-producing clusters, promote domestic fertiliser production, and increase storage capacity with climate-controlled silos.
An allocation of $1 billion has been budgeted in 2026 to begin construction of these silos. Dr Singh also highlighted efforts to expand trade opportunities, noting active initiatives to access reliable markets in Mexico and Europe. Additional measures include improving tillage methods, adopting nano fertilisers, distributing certified seeds, commercialising biofortified rice, introducing a new aromatic rice variety, and expanding the production of value-added rice products. In financial terms, the Government spent $430.9 billion on rice industry development in 2025, excluding fertiliser and paddy subsidies and has budgeted an additional $430 million for 2026. The Finance Minister emphasised that these measures aim to strengthen production, increase competitiveness in international markets and ensure sustainable growth for one of Guyana’s key agricultural sectors. Over the past weeks, rice farmers in Regions Two (Pomeroon-Supenaam) and Six (East Berbice -Corentyne) have received significant financial support from the Government as part of efforts to stabilise paddy prices and protect farmers from declining global market conditions. Agriculture Minister Zulfikar Mustapha led the distribution of subsidies valued at $300 per bag of paddy, benefiting over 2,700 farmers across the two regions. The initiative represents a direct injection of more than $4.1 billion in cash assistance, with an additional $2 billion in fertiliser support, bringing total direct assistance to over $6.1 billion. Mustapha highlighted that the subsidies form part of a broader Government strategy, which includes infrastructural investments, machinery clusters, seed processing facilities, crop insurance fully covered by the Government and efforts to expand international markets. These measures aim to reduce production costs, enhance productivity and ensure the sustainability and resilience of the rice sector. Farmers expressed gratitude, noting that the support will help cover operational costs such as labour, fertiliser and machinery hire, ensuring their livelihoods remain secure despite fluctuating global rice prices.