“We can’t control prices in supermarkets” – Mustapha on hike in rice costs

…assures of adequate supplies for both local, foreign markets

Agriculture Minister Zulfikar Mustapha has stated that Government cannot control the increase in prices for rice in the supermarkets but assures that there is sufficient supply to meet the demands of both local and foreign markets.
He made this comment during the consideration of an $8.5 billion Financial Paper in the National Assembly on Friday. This sum was advances made from the Constingency Fund for the period April 1 to July 30, 2024.
Mustapha was grilled on a $524 million subvention to the Guyana Rice Development Board (GRDB). He was asked by Opposition Member of Parliament, Vinceroy Jordan, about the industry’s capability to meet both local and foreign demands.
“I met yesterday (Thursday) with GREMA – the Guyana Rice Exporters and Millers Association and they assured me that there is enough rice in the system for export and local consumption,” the minister noted.
In fact, he went onto disclose that during the first crop of this year, some 362,040 tonnes of rice were produced. The agriculture minister is confident in achieving the 710,000 tonnes production target that was set for 2024.
In light of the minister’s response, the Opposition MP further questioned Mustapha about the increase in the cost of rice in the local market – a situation which the agriculture minister contended was not caused by any shortages.
“That is why I met with the millers [on Thursday]. They assured me that the price remained the same, and that is not a supply problem. We have enough [to] supply… We are living in a market economy and we can’t put a controlled price on the supermarkets but I asked the millers to put a recommended price, which they will do… The point is that we don’t have a shortage of rice locally or for exports,” minister explained.
Replenish GRDB’s account
The funds sought, which were eventually approved in the National Assembly, was to replenish the GRDB account after government first reduced the commission paid by millers by 25 per cent to cushion the impact from the COVID-19 pandemic and then subsequently removed it completely for a four-month period last year so that rice farmers got a higher price for their paddies.
While the commission was removed from April to August 2024, the agriculture minister disclosed that it has since been restored and there are efforts now to gradually increase the commission from the current 75 per cent back to the full 100 per cent cost.
“We are working here with a supply-chain management, [but] we are working with the millers. As a matter of fact, only yesterday [Thursday] I had a meeting with GREMA and the millers assured me that seeing we’re having now increase in production, we will try as much as a possible to go back to normalcy,” Mustapha stated.
Meanwhile, this $524 million shortfall at GRDB accounts for $404.8 million in employment cost, $42.9 million for materials and supplies, $11.1 million for utilities, $21.7 million for out of crop maintenance, $43.3 million field operations.
According to the agriculture minister, there were certain circumstances such as paddy bug infestations, irrigation issues and even the impact of the El Niño phenomenon, among others, that needed urgent attention hence the money had to be spent on addressing them.

Increased production
Only earlier this week, Mustapha disclosed that Guyana’s rice sector has generated a whopping US$127 million already for the year even as a production continues to increase.
“When you look at the rice industry, we are seeing a lot also for a revenue coming in for example in 2023 the rice industry brought in US$212 million for this year, almost US$127 million have already been generated by this industry so rice is an important part of our country’s development” he said during remarks on Tuesday at the closing ceremony for the Enhancing Precision Farming Practices in rice production for Guyana’s small farmers using drone technology programme, which was conducted in collaboration with GRDB and The Food and Drug Organisation.
According to Mustapha, his Ministry has been committed towards enhancing agricultural productivity. He added that through the GRDB, they have implemented several high yielding varieties of rice to commercial farmers.
“Over the last few years we have witnessed almost nine high-yielding rice varieties that have been released for commercial production boosting productivity and sustainability of the rice industry recently as last year when we had the agri investment expo we launched one of the most exciting variety a more nutritious variety a variety that can attract preferential prices the biofortify rice we have collaborated with ICA to launch that variety and now that variety has been made for commercial use too in our country” he stated.
Meanwhile the exploration of new rice varieties and export markets aligns with the government’s commitment to advancing the agricultural sector and ensuring sustainable development.
In 2023, the rice sector recorded an increase of seven per cent with a production of 653,706 metric tonnes. This signifies an increase of 43,111 metric tonnes in 2023 as compared to 610,595 in 2022. Guyana earned approximately $45.2 billion in exports in 2023, over $3 billion more than in 2022.
This year, $1.3 billion was budgeted to be expended by the GRDB to support increased production and productivity of the rice industry.
Mustapha explained that the government would continue to implement various measures to bring immense relief to rice farmers so as to maintain the level of production. So far, farmers have benefited from the distribution of seed paddy and availability of more farmlands to increase yields, and a number of facilities have been built and upgraded to aid in the nation’s rice production. (G8)