Rice farmers receive assurance on paddy prices from Agri Minister

– “Govt remains committed to ensuring farmers benefit from favourable prices for paddy” – Min Mustapha

During a series of meetings in Regions Five and Six on Wednesday, Agriculture Minister Zulfikar Mustapha told rice farmers that the Government remains committed to ensuring they benefit from stable prices for their paddy.
On Tuesday, it was announced that negotiations between the Government of Guyana and local rice millers resulted in an agreement being signed that would see farmers receiving a minimum of $4,000 for a bag of paddy. The negotiations were spearheaded by H.E. President Irfaan Ali.

While addressing farmers, Minister Mustapha explained that the negotiations began before farmers commenced harvesting, and as millers had indicated, there is a decline in the world market price for rice. He said that while global factors were unfavourable, the Government maintained that farmers should benefit from a stable price for their paddy.
“As a responsible Government, we do not sit down and wait for things to happen. Although we haven’t had major harvesting, H.E. President Dr. Irfaan Ali, myself, and a team from the GRDB commenced engagements and negotiations with millers weeks ago, because we believe farmers should have the best price for paddy. The millers were reluctant because the world market price for rice had declined, and there was a surplus of rice on the world market. Some of the millers even indicated that they do not have a quota yet to sell to places like Jamaica, the Dominican Republic, Europe, and so on, and that rice is cheaper in countries like Brazil, Uruguay and Paraguay.
So, many factors were presented to us by the millers, but we were still able to reach an agreement so that farmers can get a minimum of $4,000 for a bag of paddy, with each bag weighing 143lbs,” Minister Mustapha explained.
Minister Mustapha also reminded farmers that when a similar situation had obtained in 2023, Government had stepped in to ensure farmers receive favourable prices for their paddy.
“This year, more acres are under cultivation, and it is projected that we will have an even higher production record. With this, farmers deserve good prices for their paddy. And while world market prices have posed a challenge locally, the Government has intervened. In 2023, when the price of paddy was low, we met with the millers and worked out an arrangement. The Government had to forego the sales commission that millers usually paid to the GRDB. That money was then used to increase the price farmers received for their paddy. At that time, because of the amount of paddy we’d produced, it amounted to approximately $498 million.
President Ali first instructed that it be reduced from $8 to $6 per tonne, and later on, it was temporarily suspended so that farmers could have a better price for their paddy,” he explained.
He also assured farmers who sold their paddy to millers before the announcement was made that they would benefit from the intervention.
“Based on the records provided by the GRDB, just about 2% of the paddy cultivated has been harvested. I know some of you have already sold paddy to the mills. I want to assure you that you will also benefit. Those who sold earlier will get the retro payment from the mills. So, if you sold your paddy earlier, you can take your receipt back to the mills and get the retro. We will have senior officers at the mills to assist with overseeing this process,” he explained.
Richard Goopchand, a rice and cattle farmer from the MMA Scheme, expressed his gratitude to President Ali and the GRDB for the intervention.
“I am very thankful to His Excellency Dr. Irfaan Ali for the timely intervention, so that we can receive a good price for our paddy. If he hadn’t intervened, it could’ve been worse. We cannot forget that, at one time, when the price for paddy was as low as $2,800 per bag, the previous Government promised us $9,000, and when they got into Government, we were told rice is a private business and that there would be no intervention. So, I’m thanking His Excellency President Dr. Irfaan Ali, the Minister of Agriculture, and the staff of GRDB for the timely intervention so that we could have this increase,” the farmer explained.