West Berbice mills offer rice farmers $2800 per bag of paddy

…at last, crop millers agreed to $3700 as Government subsidised $300

Millers on the West Coast of Berbice, Region Five (Mahaica-Berbice), are now offering rice farmers $2800 per bag of paddy.
On Friday, two rice mills in the region, Saj Rice Mill at Burma and Rayaadul Hakh Rice Industry at Mahaicony, both issued notices indicating that they will be offering no more than $2800 per bag of paddy supplied. This publication was told that the notices were displayed on the companies’ notice boards, and copies were distributed to farmers.
In Region Five, where about 100,000 acres were under rice cultivation, farmers began harvesting last month and were not told or aware of the price millers were offering per 143lb bag of paddy.

Previous rice crop prices
This is compared with an offer of $3700 during the first crop of this year when the Government agreed to subsidise $300 for each bag, ensuring that farmers receive no less than $4000 for each bag of paddy they supply to the mill.
During the first rice crop in 2025, the Government, recognising the vulnerability of rice farmers to fluctuations in global market prices, took a proactive step to ensure they receive stable and fair compensation for their paddy.
One major initiative includes the exploration and establishment of guaranteed minimum pricing mechanisms, where the Government may intervene to support prices during downturns.
The Government promised to ensure that rice farmers will not receive less than $4000 per bag of paddy.
During the first crop this year, farmers and millers were at loggerheads over the price being offered by millers and the prices rice farmers were willing to accept.
The Government negotiated with millers and secured an agreement that rice farmers will receive no less than $4000 per bag of paddy for the first crop of 2025.
To ensure farmers can get at least $4000 per bag, a $300 contribution was committed by the Government for every bag sold to millers.
The Government allocated $2.7 billion for the project.
Millers were initially reluctant to maintain previous crop prices, citing influences of world market prices, but with Government intervention, a floor of $4000 per bag was agreed.

Global prices
Global rice prices have experienced a decline in recent months due to a combination of factors affecting supply and demand dynamics. One key driver is the resumption of exports from major rice-producing countries such as India and Vietnam, following earlier restrictions and tight supply in 2023 and early 2024. Improved weather conditions have also contributed to higher yields in parts of Asia, leading to increased global supply.
As a result, international buyers are seeing more options and negotiating lower prices, pushing down the average price per metric tonne. Additionally, inflationary pressures in many importing countries have dampened demand, as buyers seek to manage their food import bills more conservatively.
The decline in global rice prices has posed challenges for rice-exporting nations like Guyana, where farmers are vulnerable to international market shifts.
During 2024, the national average yield per acre was 41 bags. Whilst this crop is expected to be less because of poor weather, farmers in region five say that production costs range between $3500 and $3800 to produce each bag of paddy.
The Government had supplied one bag of fertiliser to farmers for each acre of rice they had under cultivation. The fertiliser subsidy cost the Government an additional $2 billion.
Farmers in Region Five told this publication that the subsidy would have reduced production cost, bringing it to between $3200 and $3500 per bag.