PPP/C will continue to support the rice industry – VP Jagdeo
Vice President Dr Bharrat Jagdeo assured rice farmers that the government will support the industry during the current economic challenges and highlighted the immediate pressures that may increase production costs.
Addressing farmers at a meeting convened by President Dr Mohamed Irfaan Ali on Thursday, VP Jagdeo identified two urgent challenges facing the industry: a reduction in the global market price of rice and a sharp rise in input costs.
The government is reassuring farmers as the US-Iran conflict causes economic changes that will affect many sectors, especially agriculture, in both the short and long term.
Fertiliser prices globally have increased by 46 to 50 per cent, while fuel prices have climbed by 30 per cent.
“These things are out of our control,” the vice president said, noting that 20 per cent of global oil supply passes through the Strait of Hormuz.
Despite the bleak external picture, VP Jagdeo pointed to the government’s impressive record of investing in the rice sector as grounds for optimism.
He highlighted ongoing drainage and irrigation works in Regions Five and Six, including the construction of approximately 125 kilometres of dams, rehabilitation of 841 kilometres of canals, and the installation of 39 fixed pumps and 40 mobile pumps, funded through Guyana’s forest carbon revenues.
When completed, the projects are expected to open up 100,000 acres of new agricultural land.
VP Jagdeo also announced that the government has already received bids for the construction of drying and storage facilities, which will allow farmers to store harvested paddy rather than being forced to sell at unfavourable prices.
“The farmers will have greater bargaining power,” he said. “That’s a huge sum of money there, because we can then support markets.”
He added that the government removed a 50 per cent fuel tax during its first term, a measure valued at approximately 400 million US dollars annually. He cautioned that there is no further tax buffer to absorb the current spike in global fuel costs.
“The president has indicated that he’s willing to assist the industry in overcoming the immediate problems. We have long-term problems in the industry, and we have immediate problems,” he told the rice farmers.
Since taking office in 2020, the government has supported the industry by providing billions in fertiliser subsidies, $300 per bag of paddy for producers, and removing VAT/duties on machinery and fuel to reduce production costs.
“Historically, from Cheddi Jagan days, all the way to this current day situation. We’ve always stood by the industry in tough times,” VP Jagdeo underscored.
Another important action is to reverse the land rental fees that were set by the APNU+AFC Government (2015-2020).
Small and medium-scale farmers were forced to pay between $3,500 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.