Multimillion-dollar agriculture development bank a “game-changer” – Agri Minister

– as Govt looks to reshape rice industry

Rice farmers in Region Five (Mahaica–Berbice) are being assured that long-standing practices which have kept them tied to a single miller – and forced them to accept whatever paddy price is offered – will soon come to an end.
Central to the Minister’s announcement is the creation of a US$200 million development bank, scheduled to begin operations soon, which will prioritise agriculture and agro-processing.

This commitment was delivered on Saturday by Agriculture Minister Zulfikar Mustapha, who met with hundreds of farmers at Onverwagt to discuss issues of their concern and upcoming reforms designed to reshape the rice industry from the ground up.
For decades, many rice farmers have been locked into restrictive arrangements where, after borrowing money or receiving fertiliser and inputs from millers, they were obligated to sell exclusively to that miller, often at prices that left them struggling to cover expenses.
Farmers have repeatedly complained that these binding relationships erase their bargaining power and create a cycle of dependency that is difficult to escape.
However, Mustapha told the gathering that the Government has taken decisive steps to break that cycle.
“This will be a thing of the past next year,” the Minister declared to a round of applause.
He explained that new financial instruments, including the establishment of a multimillion-dollar agriculture development bank, will allow farmers to access funds directly and free themselves from arrangements that give millers disproportionate control over the rice value chain.

Development bank
Mustapha described the institution as a “game-changer” for small- and medium-scale farmers who have, for years, battled with limited access to flexible and affordable financing.
The bank will offer interest-free loans, require no collateral, and will be open to farmers who traditionally do not qualify for commercial bank lending. Mustapha said this will not only end the monopoly situation farmers face with millers but will also unlock long-term growth in the sector.
“When farmers can access their own money, interest-free and without collateral, they will no longer have to sign away their crop before planting it. You will be able to choose who to sell to, negotiate your prices, and take your paddy to the miller who treats you fairly,” Mustapha said.
Farmers welcomed the news, with some saying the new bank represents the first major step toward correcting the power imbalance between producers and buyers.
The development bank is part of the Government’s broader agenda to build a stronger, more diversified non-oil economy. Agriculture remains a pillar of Guyana’s development, supporting tens of thousands of households, and the Ministry of Agriculture has said repeatedly that the Government views the sector as essential to food security, export earnings, and sustainable job creation.
The new bank is expected to fuel growth across several subsectors, including rice, livestock, cash crops, aquaculture, coconut, and agro-processing.
According to Mustapha, the benefits will be wide-ranging: easier access to capital, farmers will be able to invest in machinery, land preparation, improved drainage and irrigation, and climate-resilient seed varieties.
It will also afford them expanded production and diversification. With financing challenges removed, producers can venture into value-added activities, such as packaged rice products, coconut water bottling, spices, and aquaculture feed production.
The bank is also expected to stimulate rural employment, as the bank’s financing is expected to spark new agricultural enterprises, leading to job creation in rural communities, especially among youth and women.
The establishment of the new financing facility is also expected to impact food security by realising increased domestic output, thus reducing Guyana’s reliance on imported foods and building resilience to global supply chain disruptions.
Access to capital will help farmers to adopt climate-smart technologies, upgrade machinery, and improve traceability and sanitary standards, as farmers are more likely to adopt modern farming technology.

Ending imbalances
Mustapha stressed that the Government understands the vulnerability many farmers feel when dealing with millers who also act as creditors. He noted that while not all millers exploit farmers, the structural imbalance gives millers significant leverage, particularly during periods of low paddy prices or financial uncertainty.
“We must protect our farmers. You produce the crop. You take the risk. You pay for labour, fertiliser, and fuel. You must be able to negotiate your price, not be forced to accept what someone tells you,” Mustapha stressed.
He said too many farmers fall into a cycle where borrowing from millers leaves them with no option but to return to the same buyer season after season, regardless of the prices offered.
The new development bank, he added, will “completely break that dependency” and usher in a fairer, more competitive marketplace for paddy.
As Guyana continues its rapid economic transformation, the Agriculture Minister emphasised that farming will remain a central pillar of national development. The new development bank, he said, is intended to ensure that farmers benefit directly from national growth and are positioned to thrive in a modern, competitive agricultural sector.
The Minister assured farmers that better days are ahead.
“We are building a future where no farmer is left behind. You will have choices, freedom, and the financial strength to run your farms the way you want. That is the commitment we are making,” he said.