– says agriculture grew 17.9% annually under PPP/C, criticises APNU interpretations
The Ministry of Agriculture has highlighted the Government’s agricultural development record, pointing to growth in the sector since 2020, while accusing the APNU of overlooking existing policies and the impact of estate closures under its former APNU/AFC administration.
In a statement issued in response to APNU’s Agriculture Month 2026 press release, the Ministry noted that while agriculture, forestry and fishing contracted by 0.5 per cent during the first half of 2026, the contraction did not reflect a general decline across the sector, noting that sugar production grew by 19.3 per cent, rice by 4.4 per cent, livestock by 17.5 per cent, forestry by 15.4 per cent and fishing by 4.1 per cent during the same period.
The Ministry said that the decline was concentrated in the other crops subsector, which fell by 6.4 per cent following above-normal rainfall that disrupted planting, damaged crops and restricted access to agricultural lands.
It argued that the sector’s performance should be assessed over a longer period rather than on the basis of a single six-month result.
According to the Ministry, agriculture, forestry and fishing contracted at an average annualised real rate of approximately 3.1 per cent between 2015 and 2020, compared with annualised growth of approximately 17.9 per cent between 2020 and 2025.
The Ministry added that the sector’s value at constant prices declined from approximately $224.9 billion in 2015 to $192.2 billion in 2020, before increasing to approximately $437 billion by 2025.
It said the figures represented a reduction of $32.7 billion in real terms during the first period, followed by an increase of $244.8 billion between 2020 and 2025.
The Ministry maintained that the figures demonstrated a reversal of the sector’s earlier performance, adding that livestock, forestry, fishing and rice had also recorded improvements across the two periods.
Rejects claim that
transformation plan is absent
Responding to APNU’s call for a National Agricultural Transformation Plan, the Ministry said the areas identified by the Opposition, including climate-resilient infrastructure, agricultural financing, agro-processing, research, market access and export development, were already incorporated into the Government’s development agenda.
It pointed to the Government’s programme for the next five years, which includes developing an additional 100,000 acres of arable land, expanding drainage and irrigation, modernising agricultural production and increasing agro-processing capacity.
The Ministry said agricultural development must be supported by roads, storage facilities, affordable energy, financing and access to domestic and regional markets if increased production is to translate into a competitive industry.
Budget 2026 allocated $113.2 billion to the sector, including $81.9 billion for drainage and irrigation. The Ministry said the funding supports additional pumping capacity, improved sluices, drainage infrastructure and other measures intended to strengthen the sector’s resilience to adverse weather.
Other areas of investment include agricultural research, planting materials, shade houses, cold storage, mechanisation, aquaculture and agro-processing.
The Ministry also highlighted the operationalisation of the Guyana Development Bank, which provides eligible farmers, agricultural entrepreneurs and other small businesses with access to interest-free loans of up to $3 million without collateral.
While noting that public expenditure alone does not establish success, the Ministry said the effectiveness of these initiatives should be assessed through improvements in production, productivity, cultivated acreage and farmers’ incomes.
It argued that the existence of implementation challenges did not mean the Government lacked an agricultural development strategy.
Estate closures under APNU/AFC and its consequences
The Ministry also criticised APNU’s position on GuySuCo, noting that the party had called for restructuring, diversification and improved management of the sugar industry.
It pointed to the closure of the Wales, East Demerara, Rose Hall and Skeldon estates under the APNU/AFC administration, which it said directly affected 7,047 workers, including 5,262 permanent workers who were severed and 1,785 temporary workers who were affected.
The Ministry said the consequences extended beyond the workers to their families, private cane farmers, village businesses and communities dependent on the sugar industry.
It further stated that the Commission of Inquiry commissioned by the APNU/AFC Government had not recommended the closure of the estates at the time, but the administration proceeded with the decisions after receiving the findings.
According to the Ministry, the closures reduced the industry’s productive capacity, leaving large areas of cane cultivation discontinued and factories and supporting infrastructure out of operation.
It said rebuilding that capacity required the rehabilitation of abandoned fields, replanting, restoration of drainage systems and machinery, and the recruitment and training of workers.
The Ministry noted that GuySuCo continued to face operational, management and productivity challenges, and described the downward revision of the 2026 sugar production target as disappointing.
However, it argued that APNU should also account for the consequences of decisions taken under its administration when assessing the industry’s present performance.
The Government’s approach, the Ministry said, was to restore production while pursuing mechanisation, improved field and factory operations, value-added production and commercially viable diversification.
It added that progress should ultimately be measured through higher output, lower production costs, improved financial performance and the welfare of sugar workers.
Food prices and rice exports
The Ministry also addressed APNU’s reference to a 6.7 per cent increase in food prices between December 2025 and June 2026, noting the effect of higher prices on household purchasing power.
It said food prices were influenced by several factors, including weather-related disruptions, imported inflation, transportation costs, distribution margins and changes in demand.
The Government’s response includes expanding domestic cultivation, providing planting materials and technical assistance, investing in storage and agro-processing, and improving connections between farmers and consumers.
The Ministry cited the farmers’ market programme as an initiative intended to improve market access for producers while helping consumers obtain food at lower prices.
It also pointed to approximately $2.8 billion distributed to 5,106 rice farmers during the first half of 2026, alongside crop-insurance payments for farmers affected by adverse weather conditions.
Addressing concerns about declining rice export earnings, the Ministry said production had increased during the first half of 2026.
Rice production reached approximately 414,088 tonnes of rice equivalent, compared with 410,194 tonnes during the corresponding period in 2025, it said.
The Ministry noted that export earnings must be considered alongside export volumes, realised prices and market conditions, adding that lower receipts alone did not establish a decline in production.
On climate resilience, it said continued investment in drainage, irrigation, flood protection and modern farming technologies was necessary to protect agricultural production against excessive rainfall, drought and other weather-related disruptions.
IMF assessment and implementation
The Ministry also rejected APNU’s interpretation of the International Monetary Fund’s October 2026 assessment. It said that the IMF had recognised the importance of economic diversification, resilience and sustainability in the Government’s development strategy.
It added the IMF’s recommendations for productivity-enhancing infrastructure, food security, climate resilience and stronger public-sector oversight were consistent with the Government’s policy direction.
The Ministry noted that the success of agricultural investment must be judged by measurable outcomes, including production volumes, yields, cultivated acreage, agricultural exports, value-added production, farmers’ incomes and food affordability.
It said challenges remained in sugar production, the recovery of the other crops subsector and the expansion and maintenance of drainage and irrigation infrastructure.
The Ministry maintained that agricultural production had expanded substantially since 2020, despite continuing constraints and adverse weather conditions.
It pointed out that several of the objectives outlined in APNU’s proposal were already being pursued through the Government’s development programme, with implementation under way.
The Ministry said agricultural transformation requires sustained investment, professional management, technical expertise, productive infrastructure and private-sector participation, adding that progress could not be measured solely by a single half-year result.
It said the Government remains committed to expanding agricultural production, improving resilience and competitiveness, and ensuring that farmers, agricultural workers and consumers benefited from the sector’s development.
: File photo of Ministry of Agriculture logo OR building
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