Govt announces $3B cash pay-outs for rice farmers

…as Pres Ali pushes consultation-led cash aid plan

President Dr Irfaan Ali on Thursday announced a new $3 billion investment to support rice farmers as the Government intensifies consultations to determine how best to deliver the assistance.
The Government launched a nationwide consultation with farmers to address challenges facing the local rice industry, many of which have been intensified by ongoing global developments.
Speaking at the Arthur Chung Conference Centre (ACCC) during the meeting, President Ali said the $3 billion in funds will be tailored based on farmers’ direct input, ensuring the support reflects their real and varied needs.
“We want to set aside $3 billion to help you once more, but we want you to help us finalise what format it should be in,” the President told stakeholders.
The Head of State outlined options, including direct cash support, fertiliser assistance, subsidies, and acreage-based payments.
He emphasised that the Government’s approach remains consultative and data-driven, noting that decisions are shaped by continuous engagement with farmers and careful assessment of market realities.
The majority of the farmers who gathered at ACCC voted for direct cash transfers.
The $3 billion will be distributed in the following way: $15,000 per acre for farmers with less than 50 acres of rice fields and $10,000 per acre for farmers with more than 50 acres of rice fields.

Challenges
Meanwhile, addressing the rice farmers, Ali had noted, “We are here today to find ways in which we will address some of the global challenges that we face today.”
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.
“We are here together as partners, and we are here to find the best possible initiatives, ideas, and solutions for the industry as a whole. And you are part of this solution-based mechanism. We believe strongly in including people in solutions, and that is why you are here today,” the Head of State emphasised.
In this regard, President Ali informed farmers that the forum is intended to develop a comprehensive strategy for the industry with the main goals of reducing the cost of production, improving productivity, and supporting diversification by maximising opportunities to earn from their lands.
“So, 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?” he explained, noting that the Government is also prepared to co-invest with farmers.
“And 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 noted.

Oversupply
Addressing the issue of oversupply of rice on the market, President Ali explained to farmers that “what happened is places like India had a lot of rice stored during COVID, and they then released it onto the market. So, there was an oversupply on the market. It took a toll on price.”
“From then to now, we have seen what is taking place with markets and the geopolitical situation around the world, whether it be Cuba, the situation in Venezuela, and the Middle East. All of this, when you take it in totality, has had a tremendous impact on the global system. And as you know, we are part of that global system. We cannot escape these global realities,” he further informed.
To address this issue, the Government previously 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.

Partner together.
President Ali encouraged stakeholders to work with the Government on solutions, assuring that the People’s Progressive Party Civic (PPP/C) will always support the rice sector.
“One thing about the People’s Progressive Party Civic: we will never leave your side. We will always be by your side. We will always be here walking this journey with you. We will always be here walking this journey with you. And this journey requires us to work together, to partner together, to make decisions together,” he noted.

Previous support
President Ali reminded that over the years, rice farmers have benefited from tremendous support under the People’s Progressive Party Civic (PPP/C) Administration.
He reminded us that “we used different tools over the years to help our farmers, whether it was tax incentives on machinery or – and this is outside of the capital investment – bringing in fertiliser in the days when we had limited resources. We brought in fertiliser to support farmers. We worked on getting support on agrochemicals and extension services.”
The Head of State also reminded them of the support offered when the PPP/C returned to office in 2020, noting that “when we came back into Government, a lot of persons who abandoned the fields came back to the fields and came back to planting because we had removed back all of those taxes and licence fees and land rent fees and D&I fees that were instituted by the then-APNU+AFC Government.”

Additionally, over $3.1 billion in fertiliser support has been provided, more than $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.
Moreover, the Government has continued to implement practical measures to build resilience within the industry. Hope-like canals are being constructed in Regions Three, Five, and Six to improve drainage and reduce flooding. Drying floors and storage facilities have been developed to enhance post-harvest handling, while farmers are being organised into clusters to better manage machinery provided by the Government, ensuring efficiency and shared access.
Investment is also ongoing in research to develop new and improved rice varieties, while extension services are being modernised to provide farmers with timely, technology-driven support. Farm-to-market roads are being upgraded and expanded to ease transportation challenges, and new markets are continuously being secured through Government-to-Government arrangements to guarantee demand for Guyana’s rice.
The Government is also rolling out technology-driven extension services to provide farmers with real-time access to information on weather patterns and disease management via mobile platforms.
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.
In July 2025, the Government launched a crop insurance programme for rice farmers across the country. Under the initiative, for the next three years, more than 6000 rice farmers will have access to insurance for their crops without having to pay a cent on premiums. It is a first-of-its-kind initiative in the Caribbean, covering losses from extreme weather like floods and droughts.
The crop insurance programme is a result of a unique partnership between the Government of Guyana, UPL Costa Rica, and Philip Morris International (PMI).

Other support
Meanwhile, President Ali reminded us of other Government interventions made amid global shocks that benefitted not only the rice sector but also the wider economy.
Guyana has 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.