Mustapha urges rice farmers to cut production costs; Govt addressing land rental prices

…rice cultivation to expand through Hope-like canals

Agriculture Minister Zulfikar Mustapha has urged rice farmers to take a proactive approach to reducing operational costs, even as the Government continues to address challenges and make major investments in the industry to strengthen productivity and resilience. The Minister made the call during a meeting with rice farmers along the Corentyne Coast, Region Six (East Berbice–Corentyne), on Saturday, where he discussed measures being implemented to ease farmers’ financial burdens while improving the sector’s long-term sustainability. Mustapha highlighted that one of the most pressing challenges affecting rice farmers is the high cost of land rental, with some persons exploiting state leases by subletting agricultural lands at inflated rates. He said this practice has significantly increased production expenses, and the Government is now taking steps to address it. “Over the last few years, we’ve seen land rental become one of the most expensive factors in production. Some persons who were given leases to do agriculture are now renting those lands and charging premium prices. I have already spoken to the Attorney General (AG) and our lawyers, and I am preparing a paper for Cabinet with recommendations to correct this situation,” Mustapha explained.
He disclosed that the laws governing the rice assessment system already provide a formula for determining fair rental value; traditionally, one bag of paddy per acre, which he intends to enforce to prevent exploitation. “All who are living overseas and renting out state land for free money will have to face the law. We will ensure that no one overcharges farmers for Government lands,” Mustapha asserted.

Direct support to farmers
Mustapha reminded farmers that the Government has been playing a major role in reducing production costs through several initiatives. These include removing taxes and duties on agricultural machinery and inputs, providing fertiliser support, and more recently, offering $300 per bag of paddy as a direct subsidy to cushion the impact of falling world market prices. “We’ve increased fertiliser assistance from half a bag to a full bag per acre, and some farmers have collected over 200 or 300 bags. We’ve also taken off duties, reduced import fees and are giving fertiliser and price support directly to farmers,” he recalled. He said these interventions form part of a broader effort involving the Guyana Rice Development Board (GRDB) and extension officers, aimed at identifying additional ways to reduce costs while promoting efficient farming practices.

Hope-like canals to open new farmlands
Minister Mustapha also pointed to the ongoing construction of two “Hope-like” canals in Region Six as another major development that will help lower costs and improve access to new farmlands. The project, modelled after the Hope Canal on the East Coast Demerara (ECD), is designed to drain excess water and protect thousands of acres of farmland from flooding – a persistent challenge in the region. The canals to be built between Whim and Letter Kenny and at Bengal Village are part of a wider national effort to improve drainage and irrigation. Once completed, the Region Six canals are expected to benefit over 188,000 acres of agricultural land and reduce flood risks by up to 70 per cent. “We’re doing the Hope-like canals right here in Region Six, and almost a hundred acres of new land will become available for cultivation. We have to ensure that small farmers get those lands, especially those who are now forced to rent. That will help them cut costs and be more independent,” Mustapha said.
The Agriculture Minister’s call for farmers to modernise and reduce costs mirrors similar appeals made recently by the Guyana Rice Producers Association (GRPA). Its President, Lekha Rambrich, has repeatedly urged rice farmers to scale back high operational expenses, particularly excessive land rentals, and to embrace mechanisation and new technologies to offset rising labour costs. “We can’t say when rice prices will go back up, but farmers need to stop renting lands at those high costs and focus on bringing down their cost of production,” Rambrich said in a recent interview. “Mechanisation isn’t just the future, it’s the only way to survive in this business. Labour is too expensive, so we have to mechanise.” Rambrich himself has introduced drone technology for spraying, fertilising and sowing in his own operations, an example of how innovation can improve efficiency and reduce expenses in the long term. Meanwhile, the Government has also been supporting this transition by investing in research, new rice varieties, and subsidised inputs. Nearly $2 billion has already been spent on fertiliser assistance this year, while plans are being advanced to establish a price stabilisation fund and construct modern storage facilities to minimise post-harvest losses and stabilise farmer income.

Government’s commitment
The Minister emphasised that the Government remains committed to supporting farmers across the rice industry, while encouraging them to modernise operations and adopt practices that can further reduce expenses. “Farmers can’t keep doing what they did 10 or 15 years ago and expect different results. We have to keep improving. Government is doing its part, but farmers must also work with us to bring down costs and increase profitability,” Mustapha advised. He added that with ongoing investments in infrastructure, input support and fairer land access, the outlook for rice production in Region Six remains strong despite current market challenges. “This Government has never turned its back on rice farmers. We’re helping to keep the industry viable, and with the new drainage canals, direct payments, and support systems, we are putting farmers in a better position to succeed,” the Agriculture Minister affirmed.