Guyana’s rice revolution – record-breaking harvests fueled by bold government action

Guyana’s rice sector, the second most vital agricultural industry, has experienced remarkable growth in the last five years, culminating in an impressive production of over 725,000 tonnes in 2024.

The growth of the sector is due to careful planning and solid investments made by the People’s Progressive Party/Civic (PPP/C) Government over the last five years.

This momentum will continue beyond 2025 with the President Dr Mohamed Irfaan Ali-led government placing agriculture as one of the key pillars of a diversified economy.

In this article, the Department of Public Information (DPI) will examine some of the major interventions over the past five years that have supported farmers, the backbone of the rice industry, as well as some of the newer initiatives.

Lowering production costs

As early as 2020, President Ali announced the removal of VAT and duties on machinery and equipment, one of the 200-plus taxes imposed by the APNU+AFC government. Farmers also benefited from the removal of VAT on agrochemicals, fertilisers and pesticides.

Fast forward to 2025. The government announced the removal of VAT on the importation of agricultural machinery, which is estimated to cost the treasury one billion dollars annually.

When the government assumed office in 2020, the excise tax on fuel stood at 50 per cent. It was reduced to 35 per cent in 2020, then to 20 per cent in October that same year.

In 2022, the government slashed it to 10 per cent and then to 0 per cent, providing significant relief to citizens, including farmers.

Another key intervention includes the reversal of land rental fees, which again were imposed by the APNU+AFC Government.

Small and medium-scale farmers were forced to pay between $3500 and $15,000 in land rental and D&I charges during that period, but are now saving $1.6 billion annually, thanks to the reversed rates.

When combined, these measures help rice farmers produce at a lower cost and earn more income from their crop.

Disaster relief

In 2021, many farmers lost millions in damages to rice, cash crops, and livestock due to severe flooding across the country.

Acknowledging that this threatened farmers’ livelihoods, the government deployed over $9 billion in emergency relief, with more than $3 billion being distributed to rice farmers to help them replant and recover.

The government has pumped millions into improving irrigation systems and roads to help farms withstand extreme weather patterns due to climate change.

Fertiliser and seed support

To enhance crop yield and combat paddy bugs, a $2 billion investment was made in 2025 to subsidise fertilisers for thousands of farmers across the country.

The government covered the increasing global costs of fertiliser to keep prices stable for consumers.

Farmers also benefit from quality seed through the government’s seed paddy programme.

In fact, three new varieties of rice were introduced to farmers. The Guyana Rice Development Board (GRDB) launched GRDB16 in 2020, GRDB18 – 2024, and GRDBIICA17 (enriched with zinc) in 2023.

Seed processing facilities will also be established in every major rice-producing area, with one already commissioned in Lesbeholden, Region Six (East Berbice-Corentyne).

Newer initiatives: Crop Insurance & Price Support

Building on these efforts, the government is now moving beyond input support to tackle the bigger challenges farmers face: risk and stability, with the launch of the Crop Insurance scheme.

Recognising that unpredictable weather, crop losses, and market shocks can undermine years of hard work, more than 6000 rice farmers will have access to crop insurance without having to pay anything out of pocket for the next three years.

 By mid-2025, about 69.4 per cent of rice farmers had registered for the insurance programme.

“This programme is not just relief, it is a lifeline for you,” President Ali had said at the launching of the Crop Insurance.

Farmers are currently facing price issues, and the government aims to establish a minimum price of G$4,000 per bag of paddy, plus a G$300 bonus per bag.

The Ministry of Agriculture stated that the government will keep working with stakeholders to find quick and long-term solutions to the sector’s challenges.

President Ali has also committed that his government will move to establish modern storage facilities across all rice-producing regions to strengthen resilience and give farmers greater flexibility in storing their paddy over a longer period of time

The government plans to use drones for fertilising and spraying, and to group farmers to save costs, with a target rollout by 2026.

Additionally, the government and farmers are developing 35,000 acres of multi-crop land (sugarcane, citrus, coconuts) on the Corentyne coast.

Approximately eight per cent of Guyana’s budget is strategically allocated to investments in agriculture, significantly outpacing the current global average of 1.5 per cent. This factor alone clearly demonstrates the PPP/C Government’s unwavering commitment to empowering the farming community.