Govt delivers $480M in paddy subsidies to 1,618 Region 5 farmers

…total of $2.1B to be distributed to rice farmers countrywide

By Andrew Carmicheal

The Government on Tuesday began fulfilling a commitment made by President Dr Irfaan Ali, as cheques were distributed to rice farmers under the $300-per-bag paddy subsidy for the second crop, marking another major cash injection into the country’s rice sector.

As part of this exercise, approximately $480.5 million was distributed to 1,618 rice farmers in Region Five (Mahaica–Berbice).
This intervention is part of a national programme, representing a total Government investment of approximately $2.1 billion, aimed at sustaining rice production, enhancing food security, and reinforcing the resilience of one of Guyana’s most important agricultural sectors.
The first round of cheque distribution took place at the Mahaica Mahaicony Abary (MMA) Office at Onverwagt, West Coast Berbice, where Agriculture Minister Zulfikar Mustapha said the exercise demonstrated that Government promises to farmers are treated as binding commitments.
Addressing farmers, Mustapha underscored that the subsidy was part of a strategy to protect rice producers from volatility in the global market while sustaining growth in domestic production.
“This Government… whenever we make a promise, we take that as a contract between us and the people of our country, and we are here this afternoon to fulfil His Excellency’s promise to you, the rice farmers of our country,” the Minister said.
The over 1600 farmers attached to the MMA Scheme in Region Five cultivated an estimated 102,000 acres of rice, achieving an average yield of about 30 bags per acre. As a result, subsidies paid to farmers in the region are expected to total approximately $480 million.
The $300-per-bag payment forms part of a national intervention announced by President Irfaan Ali late last year, as paddy prices weakened due to international market pressures. Government projections indicate that the second crop would contribute to the overall production of more than 800,000 tonnes of rice, translating into billions of dollars in direct and indirect support for farmers.
International developments affected local prices
In his address, Mustapha provided farmers with a detailed explanation of how international developments have affected local prices, pointing particularly to large-scale rice exporters.
“Our prices in Guyana have been influenced by the price on the world market. When we are striving to produce 800,000 tonnes of rice, countries like India, Indonesia, and other Asian countries are dumping on the world market. India alone dumps on the world market,” he said.
Mustapha reminded farmers that in 2024, when India restricted rice exports, global supply tightened, but conditions later shifted again as exports resumed, placing downward pressure on prices.
Against that background, the Minister said Government interventions were necessary to stabilise incomes in the rice belt and to ensure farmers could continue planting and investing in their operations.
The Minister also explained why the Administration changed the payment mechanism for the subsidy, opting for direct disbursement through the Guyana Rice Development Board (GRDB) rather than routing funds through millers.
“Last year, we gave again to the farmers $300 a bag for every bag of paddy they sold, but what we did earlier, we gave the money to the millers, and the millers eventually paid the farmers. But then, when I went around, some farmers were telling me that… they didn’t receive the full compensation. So I decided that this time around, GRDB itself will pay the $300 for farmers. And as I said, very early in the new year, we will pay it,” he reminded.
Export commissions waived

The Minister noted that the earlier intervention required the Government to provide significant budgetary support to the GRDB after export commissions were waived to help millers raise prices paid to farmers.
“At that time, we contributed almost $600 million… Six hundred million in subvention we had to give to the GRDB for their operation,” Mustapha recalled.
He pointed out that the support from the Government then coincided with historic growth in the sector, noting that Guyana surpassed 700,000 tonnes of rice production for the first time, reaching 725,000 tonnes last year.
“Last year, for the first time in the history of our country, we surpassed the 700,000-tonnes mark in rice production. And what we have been doing? We have been making the investment,” he said.
He pointed to the MMA as the country’s largest agricultural scheme, with nearly 120,000 acres available for rice cultivation, alongside significant land resources for cattle rearing and diversification.
Detailing the scale of state intervention, Mustapha said Government contributions went far beyond the $300-per-bag subsidy.
“Last year, with the $300 a bag, we contributed $1.5 billion to the farmers, and with this contribution again… we will be contributing $1.9 billion,” the Minister stated.
He further outlined investments in seed paddy, drainage and irrigation works, machinery, and pest control, including the establishment of a national response to paddy bug infestations.
On fertiliser support alone, the Minister revealed that Government spending increased sharply.
“Last year, we gave fertiliser, half a bag per acre… that amounted to $970 million. For the last crop, we gave a bag per acre… the amount was $2.8 billion we contributed to the rice.”
Helping other sectors
Importantly, Mustapha used the occasion to reject claims that Government assistance was limited to one sector, announcing that fisherfolk would soon receive direct cash grants as well.
“In the next few days, we will give the fisher folks… Every fisherman in this country will receive $150,000 too, from the Government of Guyana, as a grant that we are giving to the fishing industry,” he said.
“When we give money to sugar, they call it a sugar Government. When we give money to the rice farmers, they call it a rice Government… But the point I am trying to make is that we are helping every single sector of our country.”
According to Mustapha, agriculture remains central to Guyana’s global standing in food security.
“Guyana today is leading the charge… Around the world, Guyana is ranked as one of the top countries in agriculture and food security,” he said.
The agriculture Minister assured farmers that while cheques were distributed at the MMA office on Tuesday, those unable to attend would still receive their payments.
“Everybody who is here will receive their cheque from GRDB, and those who are not here, their cheques will be sent to them, and they will collect subsequently,” he stated.
Meanwhile, rice farmers on the Essequibo Coast, Region Two (Pomeroon-Supenaam), and those in Region Six (East Berbice-Corentyne) are soon to start receiving their subsidies along with those on the East Coast of Demerara.