Govt never neglects farmers, will continue working to find markets – Agri Minister

Amid concerns over falling rice prices internationally, some rice farmers in Region Six (East Berbice-Corentyne) are questioning whether they should go back into the next crop. Agriculture Minister Zulfikar Mustapha, however, says Government will continue to assist them.

Earlier, rice millers were unable to pay farmers the $4,000 price per bag during the second crop in 2024. This prompted the Government to step in, and an agreement was reached whereby the miller would pay $3,700 per bag and the Government would subsidise $300, ensuring that rice farmers were able to get $4,000 per bag of rice for this crop. However, rice farmers have continued to express concern as prices on the world market continue to drop, with the projection that prices will drop even further.
While not committing to any arrangement with farmers, Mustapha told this publication that the Government is seeking sustainable ways to address the issue.
“Well, you know the Government never neglects farmers and we will continue to work to find markets; more lucrative markets for farmers’ paddy. I am hoping that by the next crop we can have a better price. As you said that farmers are expressing some issue that they don’t want to go back, but we have been advising them to go back because I am hoping that the price can be maintained or we can get more market like in places like the Dominican Republic and other places around the Caribbean and around the world. We are hoping to get a more lucrative market,” he said.
President of the Rice Producers Association (RPA) Leeka Rambrich is urging rice farmers to pay careful attention to their investments. He says there is a need for those farmers to seek maximum output from minimum investment.
Rambrich, who is both a rice farmer and miller, said farmers must be able to produce rice below $48,000 a tonne. One way to do this is for farmers to be careful when taking loans.
“The minimum cost would come when farmers have to look for lower interest costs rather than going to the millers and obtain high interest rates. A miller would take an overdraft from a bank and buy fertiliser and chemicals, and, give them to farmers at a high interest rate and make a profit from you, when you sell your rice to him, he will make a profit as well,” he disclosed.
According to the RPA official, some millers would acquire loans from financial institutions at seven per cent simple interest and then provide cash, and other inputs to the farmer and twelve per cent compound interest.
“So we as farmers have to stand up and step consciously. Before going to a miller and take fertiliser, seeds, or whatever you take from them – please, I advise you, as the price of rice is trickling down internationally, please look at your cost,” he emphasised, noting that this is one way of cutting cost.
Meanwhile, Minister Mustapha noted that the interventions implemented by his Ministry for rice farmers on the Essequibo Coast has brought tremendous benefits to farmers there.
Even though the Government is already working with the millers to ensure farmers benefit from $4,000 per bag of paddy, rice farmers from the Essequibo Coast had been incurring additional transportation costs.
However, following consultations with stakeholders, a decision had been made to forgo those costs. Hence, truck drivers who are transporting paddy or rice will no longer have to pay to cross on the ferry.
“The millers were unable to give the farmers the price that they gave last year, that was $4000 a bag for paddy. And with the Government’s intervention, we are now contributing for every bag of paddy sold to the rice miller, we are contributing $300 and that is a tremendous amount because if the projection is that what they gave me: nine million bags, we will have to contribute almost $2.7 billion to the price to help the farmers with prices.
Plus, the President announced another $2 billion in fertiliser distribution and every acre of land farmers are cultivating they will receive a bag of fertiliser this time. So this will be tremendous help for the farmers; plus, the GRDB (Guyana Rice Development Board) is giving them extension services and also, input like seed paddy at a reduced cost, and some of them – we are giving them these paddies free to seed; paddy so that they can plant in the field,” the Minister disclosed.