Full support for rice farmers – Pres Ali

…as Government eyes value-added growth in global price slump

President Dr Irfaan Ali has assured rice farmers that his administration will continue to stand with them despite falling international rice prices, which he attributed to record levels of global production and stockpiling.
At a press conference held at the Office of the President on Tuesday, Ali explained that while Guyana is preparing for another strong rice harvest, international market conditions remain challenging. “We have another exciting rice crop ahead of us. But the international market and international prices are not as exciting as the production itself,” the President said.

He noted that major exporters such as India, Vietnam, and Brazil have all recorded bumper harvests, leaving large stockpiles to be pushed onto the global market. This oversupply, he said, has created a glut, depressing prices worldwide. By the end of August, the weighted average of global white rice export quotas had fallen to US$450 per tonne – down US$14 from July and US$228 compared to the same period last year.
Despite these challenges, Ali stressed that the Government has consistently intervened to shield farmers from the worst effects of the downturn. Over the past year, rice producers have benefited from $2 billion in direct price support, ensuring a minimum payment of $4000 per bag. In addition, $3.6 billion was spent on fertiliser, flood relief, and seed paddy assistance, while a national crop insurance programme was launched to provide further protection.
Farmers have also seen tax relief, with VAT and duties removed from machinery, equipment, agrochemicals, fertilisers, and pesticides. Ali also reminded them that the longstanding Panama payment dispute had been settled with a $1.5 billion pay-out, while the Guyana Rice Development Board (GRDB) sales commission was reduced to zero as of March 2025.
Acknowledging that “many of the tools available to assist farmers and millers” have already been exhausted, Ali said Government officials are now engaging directly with stakeholders to find further solutions. The Ministers of Finance and Agriculture met with millers on Tuesday, with additional discussions planned later this week, before wider consultations with farmers across the rice-growing regions.
“Our farmers must know that the Government is with them, and we are going to confront this challenge together,” Ali said.
Amid the global difficulties, he pointed to positive news locally, noting that more than 209,000 acres have been cultivated for the second crop of 2025, with an average yield projected at 40 bags per acre.

No scaling back production
Despite the drop in global prices for rice, President Ali has ruled out any move to scale back Guyana’s rice production despite the global glut that has sent prices tumbling, insisting instead that the country must invest in adding value, storage, and new markets.
Responding to questions from media practitioners during Tuesday’s conference, Ali acknowledged that farmers could face difficulties as international stockpiles continue to grow and market forces drive down prices. However, he said Guyana’s focus must be on building resilience within the sector.
“I don’t think we can scale back,” the President stated firmly. “I believe that we have to add value. That is why we have to build out an agro-ecosystem, a business system. We have to find ways in which we create higher value for our rice.”
Ali explained that part of this strategy involves expanding storage capacity across every rice-producing region, giving farmers and millers more flexibility to manage their supplies. “When you want to play in a big game and have increased production, you have to have storage capacity,” he said. “We have to have some amount of stockpiling capacity and capability too, and we are building that out in every single region.”
At the same time, he pointed to opportunities in diversifying rice use domestically through value-added processing and new product development. He also stressed the importance of maximising trade agreements to secure higher prices and expand Guyana’s access to international markets.
“These are important things in the equation of rice,” Ali noted, adding that the Government’s wider agricultural strategy takes into account not only rice but also other commodities. He underscored the need for comprehensive support systems, including Government-backed infrastructure, access to financing, and targeted investment, to ensure the survival of both farmers and millers.
“Market forces will play every day. “That’s a fact of life,” Ali said. “But how we manage our production system, the type of investment we make, and how we use our trade arrangements will determine our success. Scaling back is not an option – adding value is.”