Agri. Minister to meet rice farmers, millers as second crop commences

…farmers express concern over paddy prices offered by millers

Minister of Agriculture, Zulfikar Mustapha, has agreed to meet with rice farmers and millers as harvesting of the second rice crop has commenced across the country, while rice farmers have expressed concern over the price being offered by millers for each bag of paddy being sold to them. Minister Mustapha, along with senior officials from the Guyana Rice Development Board (GRDB), is expected to be consulting with rice farmers and millers across the rice-growing regions of the country during the course of this week. According to the Ministry of Agriculture, the engagements are part of the Ministry’s continued efforts to promote open dialogue and collaboration with stakeholders in the rice industry. The Ministry said the meetings will focus on matters related to the current crop as it remains committed to working closely with all stakeholders in the rice industry to support a successful and productive crop, and to advance the Government’s broader food security agenda.

Millers, farmers and paddy prices
In Region Five (Mahaica-Berbice) on Friday two mills announced that they will be offering $2800 per bag of rice. This compares with $3700 offered by millers’ last crop, to which the Government added a further $300, making it $4000 that farmers received for each bag of paddy produced and sold to the mills. The recent drop in world rice prices has directly translated into lower prices being paid to Guyanese rice farmers for their paddy, squeezing their margins and threatening their livelihoods.
Millers have cited global market trends — with rice once selling at over US$700 per tonne, now hovering around US$400 to $420 as a justification to pay less for paddy locally. Meanwhile, operational costs (for fuel, fertiliser, and labour) remain high, and in many cases rising, meaning the gap between production cost and revenue is widening.
At $2800 per bag, some farmers say they are selling at a loss. However, with world prices dropping, one official in the industry said farmers need to focus on reducing production costs. Global rice prices have experienced a decline in recent months due to a combination of factors affecting supply and demand dynamics. One key driver is the resumption of exports from major rice-producing countries such as India and Vietnam, following earlier restrictions and tight supply in 2023 and early 2024. Improved weather conditions have also contributed to higher yields in parts of Asia, leading to increased global supply. As a result, international buyers are seeing more options and negotiating lower prices, pushing down the average price per tonne. Additionally, inflationary pressures in many importing countries have dampened demand, as buyers seek to manage their food import bills more conservatively.
The decline in global rice prices has posed challenges for rice-exporting nations like Guyana, where farmers are vulnerable to international market shifts.