Govt secures $4,000 per bag minimum paddy price after intense negotiations with millers

After weeks of negotiations between President Dr Irfaan Ali, the Agriculture Ministry, the Guyana Rice Development Board (GRDB), and local rice millers, an official agreement has been reached ensuring that rice farmers receive no less than $4,000 per bag of paddy for the first crop of 2025.
Agriculture Minister, Zulfikar Mustapha, made the announcement during a meeting with rice farmers in Mahaica, where he highlighted President Ali’s continuous efforts to secure a fair price for farmers despite challenges in the global rice market.
“The president engaged the millers on several occasions to determine how we can work together to keep the price of paddy at a stable rate. The millers were a bit reluctant to maintain the last crop’s price because they said it is being influenced by the world market price. Today, we were finally able to reach an agreement where the millers will not purchase farmers’ paddy for less than $4,000 per bag”.

“This means we’ll also have to make a contribution. We did it before, and we’ll do it again. Like any other responsible government, we are always ensuring that we bring relief to people. The farmers know that this government, under the leadership of His Excellency, President Irfaan Ali, has and will always ensure farmers get a fair deal,” Mustapha explained.
For the first crop of 2025, approximately 230,000 acres of land have been cultivated, with an estimated harvest of 9 million bags of paddy. Rice production for the year is projected to reach 804,000 metric tonnes.
Mustapha reassured farmers of the government’s ongoing support and outlined past measures taken to safeguard the industry.
“Over the last four years, we’ve transformed the agriculture sector and the rice industry. You all can recall that when the price for paddy was down and the millers were reluctant to pay farmers a particular price, we abolished the sales commission. That was over $498 million. President Ali met with the millers, and instead of paying that money to the GRDB, it was paid to the farmers. On two occasions, we gave farmers almost $2 billion in fertilizer. We are making seed paddy available; we are building the infrastructure. We gave flood relief. This government has not abandoned you, so do not be tricked by those who want to take advantage of a global situation for political gain,” he noted.
In 2024, rice production exceeded expectations, reaching a record-breaking 725,282 metric tonnes. With the new pricing agreement in place, the government remains committed to ensuring stability and growth within the sector, reinforcing its dedication to Guyana’s farmers and agricultural development.
During his address at the 55th Republic Anniversary Flag Raising Ceremony, President Ali reaffirmed the government’s commitment to supporting farmers through substantial investments in agricultural infrastructure.
A few days later during his weekly press conference, Vice President Dr. Bharrat Jagdeo also reassured rice farmers that the government is actively working on solutions to address the challenges of low paddy prices and market oversupply.
Their statements came in response to tensions among rice farmers in Black Bush Polder (BBP). On Tuesday, February 21, 2025, farmers blocked sections of the main access road at Lesbeholden, cutting off vehicular traffic in protest over the low prices being offered by millers for paddy. The demonstration intensified as farmers placed tractor wheels, carts, and other large items across the road, demanding government intervention.