$3B rice farmer cash subsidies to be paid from next week

The Agriculture Ministry on Monday announced that $3 billion allocated for cash subsidies for rice farmers will be distributed from next week. This initiative is in keeping with a commitment made by President Dr Irfaan Ali in April following consultations with farmers across the country. From those consultations, it was agreed that rice farmers cultivating 50 acres or less will receive $15,000 per acre, while those cultivating more than 50 acres will receive $10,000 per acre. The Agriculture Ministry, through the Guyana Rice Development Board (GRDB), has since completed the registration process for eligible farmers and, following the conclusion of the harvest, undertook the necessary verification of claims to ensure transparency and accountability. In the statement on Monday, the Ministry noted that the verification process has now been completed, paving the way for the commencement of payments next week. “Approximately $3 billion has been allocated by the PPP/C (People’s Progressive Party/Civic) Government for this initiative, reflecting the Government’s unwavering commitment to supporting rice farmers, safeguarding livelihoods and strengthening Guyana’s rice industry. The Government remains committed to working closely with our farmers to ensure that the rice sector continues to grow, remains competitive and contributes to national food security, economic growth and rural development,” the Ministry noted in the statement. While Monday’s statement did not disclose how many farmers stand to benefit, the Government previously disclosed that last week that some 2,271 farmers from Regions Five and Six have been verified. The decision to distribute this cash subsidy to farmers was made in light of challenges impacting the industry. A major issue is declining international rice prices, driven by oversupply and high global production. This directly reduces what farmers earn locally, even when production is strong. Farmers are also faced with rising production costs, including fuel and fertiliser, which has already doubled in price from $6000 to some $12,000. This is exacerbated by the ongoing conflict in the Middle East. In addition to this subsidy, the Government is working with rice farmers on reducing the cost of production, improving productivity and supporting diversification by maximising opportunities to earn from their lands.
For instance, President Ali had explained to the rice farmers that “if you have ten acres of land, how can we convert one acre in those ten acres into a high-value crop or some high-value initiative that allows you to earn more, allows you a diversification of income with rice and some other crop or some other additional income”. In fact, the Head of State noted that the Government is even prepared to co-invest with rice farmers to support this initiative. “We are not only doing the research; we are preparing ourselves to work with you in a co-investment way so that, for example, we can support the infrastructure build-out and the capital costs to allow you to have this additional ability to earn from your land and to supplement the income from rice farming and also to withstand some of the shocks that you undergo in the rice industry,” he had explained during the consultation in April.
Moreover, to address the issue of oversupply, the Government has announced its intention to construct a massive drying floor and storage facility along the Essequibo Coast over the next five years. In fact, some $1 billion has been budgeted this year for the construction of these climate-controlled silos, which would have the capacity to store some three million bags of paddy. The rice sector continues to receive massive investments and support from the Government. Over the years, more than $3.1 billion in fertiliser support has been provided, over $96 million in seed paddy distributed and additional resources deployed to combat paddy-bug infestations. When prices fell during the first crop of 2025, the Government intervened decisively with a $300 per bag subsidy, ensuring farmers received no less than $4000 per bag. This amounted to approximately $1.9 billion in direct support. President Ali had also secured a crop insurance product for Guyana, and according to the Ministry of Agriculture, this mechanism is in place and functioning, with 4433 rice farmers registered to date. The crop insurance programme, which was launched in July 2025, is a result of a unique partnership between the Government of Guyana, UPL Costa Rica, and Philip Morris International (PMI).
Guyana has also extended its policy allowing importers to use pre-pandemic freight costs to calculate customs duties, VAT and excise taxes, rather than higher actual rates. This relief, designed to lower consumer costs, is valid until December 31, 2026. The Government also maintains zero excise tax on fuel. These measures also bring relief to the industry sector.