Govt confirms $300 per bag of paddy relief to cushion impact of low prices

– Farmers to receive payments directly from GRDB – Mustapha

Agriculture Minister Zulfikar Mustapha has announced that rice farmers across Guyana will receive $300 for every bag of paddy produced during the current crop as part of a Government relief initiative to cushion the impact of declining paddy prices.
The announcement was made on Saturday, during the Minister’s agri outreach in Region Six, in keeping with President Ali’s earlier remarks during an interview in Brazil, where he had travelled to ahead of COP30.
“As I said a few months ago, we will examine the prevailing condition, and we will take necessary steps to intervene… We will produce in this second crop more than nine million bags of paddy… And at a minimum, I can say to you now that we’re going to give, like we did in the first crop, another $300 per bag subsidy. That will be an injection of more than $2.7 billion to our rice farmers, and that is outside of the help [of $400,000]…that they will get for every 15-acre plot when you calculate it,” the President had declared.
“We are about to conclude this crop, and you all heard that the President made an announcement that every bag of paddy sold this crop, [Government] will contribute $300,” Mustapha reminded the farmers. “With the amount of paddy projected to be harvested — almost nine million bags — the Government will be contributing about $2.7 billion to assist farmers,” he reiterated.

GRDB payments
However, the Minister explained that, unlike a previous pay-out mechanism, the funds will not be distributed through millers but will be sent directly to individual farmers based on verified sales records. “I instructed GRDB (Guyana Rice Development Board) not to give the millers the money any more. Based on the number of bags of paddy you sold, we will pay you directly. If you sell 10 bags, you’ll receive $3000 from us. Some people were misled by millers in the past, but this time, you’ll get a cheque directly from GRDB,” Mustapha said. He noted that the initiative reflects the Government’s continued commitment to supporting rice farmers through fluctuating global market conditions. He said efforts are also being made to ensure that farmers can benefit from improved world market prices in the upcoming crop. “I am hoping that next year we can have a better price in the world market. So I am encouraging you all to go back and continue planting.”
During the first rice crop of 2025, the Government had also extended several forms of support to the sector, including fertiliser assistance, drainage and irrigation work, seed paddy distribution, and infrastructural upgrades to key farming areas such as Black Bush Polder, Mahaicony, and Regions Two and Three. Those interventions helped farmers recover from challenges posed by unpredictable weather patterns and increased input costs. Minister Mustapha emphasised that the rice industry remains a vital part of Guyana’s economy, and the Government will continue to invest in farmers’ resilience and productivity. “This is about ensuring our farmers stay in production and continue contributing to national food security,” Mustapha affirmed, while adding, “Our farmers are the backbone of the rice industry, and we will keep standing with them.”