Govt injects $490M into Region 6 as rice farmers receive $300-per-bag subsidy

Rice farmers in Region Six on Saturday received a major financial boost as Agriculture Minister Zulfikar Mustapha led the distribution of Government subsidies valued at $300 per bag of paddy, benefiting 1452 farmers at a total cost of $490 million.
The exercise was held at the Central Corentyne Secondary School, Bush Lot, and forms part of the Government’s nationwide intervention to stabilise rice prices and protect farmers from declining world market conditions.
Addressing farmers, Minister Mustapha said the subsidy was the fulfilment of a commitment made by President Dr Irfaan Ali after farmers complained about falling paddy prices.
“There was a time in our country when rice farmers were told that rice farming is a private business and the Government cannot intervene. But since 2020, we have seen a different approach. Every year production has increased, and last year we produced 725,000 tonnes of rice, passing 700,000 tonnes for the first time in our history,” the Minister said.

He attributed the growth to Government investments in infrastructure, research, pest control, and farmer support, recalling interventions during the paddy bug infestation when chemicals were provided free of cost, and dams were sprayed to minimise crop damage.
Mustapha explained that global rice production has placed downward pressure on prices, noting that India alone now produces about 150 million tonnes of rice, while India and China together produce nearly 294 million tonnes annually.
“With all that rice being dumped on the world market, the price in Europe, CARICOM, and other markets has declined, and that affects us. That is why, as a Government, we recognise that we must assist our farmers,” he said.
He reminded farmers that a similar $300-per-bag subsidy was paid during the first crop of last year, costing the Government about $2 billion, while the current pay out for the second crop will amount to another $2.1 billion.
“So directly, the Government is injecting $4.1 billion into the hands of farmers,” Mustapha said.
He added that fertiliser support has also been doubled from half a bag per acre to one bag per acre, costing the Government an additional $2 billion.
“These are investments because we want an industry that is vibrant and resilient,” he said.
The Minister stated that the Government has consistently intervened when farmers are affected by floods, crop destruction, or price declines.
“When prices go low and farmers suffer, we step up and we work with the farmers. That will be the process,” he assured.

Planning for the future
Looking ahead, Mustapha said the Government is focusing on reducing production costs, particularly land rental, which he described as excessively high in many areas.
He said Hope-like canals being constructed in areas such as No. 51-52 and Manchester-Lancaster will open new lands for cultivation. At the same time, the Government will also examine lease arrangements where land is rented to farmers at inflated prices.
“We have to look at that, because people are paying small fees to Lands and Surveys and charging farmers thousands per acre,” he said.
He also announced plans to expand seed processing, develop rice-producing clusters, and provide shared machinery such as combines, tractors, and ploughs to farmer groups to reduce costs.
Storage facilities will also be enhanced to give farmers greater flexibility in selling their paddy, while efforts are being intensified to secure new international markets, including discussions with Mexico.
Mustapha also highlighted the introduction of crop insurance, noting that about 85 per cent of farmers have already joined, with premiums fully covered by the Government.
“If you lose your crop by flood or drought, that insurance will kick in, and you will be compensated,” he said.
The Minister said rice remains a vital pillar of the national economy and pledged continued support for the sector.
“All the commitments we made from 2020 to 2025, we have delivered. And we will continue to enhance this industry,” he said.
He urged farmers to adopt a broader outlook, noting that Government investments benefit all sectors of society, including through school cash grants, pension increases, public assistance, free secondary and university education, healthcare improvements, and infrastructure development.
The Minister told farmers that the subsidy pay out was another example of the Government keeping its promises.
“We have a President who is keeping his word, and we are delivering on those promises to ensure our farmers are supported,” Mustapha assured.