Press Release: Rice industry strong, resilient, and expanding -as GRBD takes opposition MP to task on misleading, spurious claims

The Ministry of Agriculture has taken note of statements made by Mr. Gobin Harbhajan on the current state of Guyana’s rice industry. These utterances are extremely misleading, betraying either a complete lack of understanding of how Guyana’s rice industry functions or a reckless willingness to mislead rice farmers for cheap political mileage.

Equally troubling is the reckless narrative being pushed by Mr. Harbhajan about widespread losses due to rainfall. To date, no acreage has been officially reported as lost. Fields are being actively monitored by extension officers from the Guyana Rice Development Board, and any proper assessment can only be conducted after water has fully receded.

Having recognized Guyana’s vulnerability because of climate change and its geographic location, President Irfaan Ali successfully secured a crop insurance product for Guyana. This mechanism is in place and functioning,  with 4,433 rice farmers registered to date. Earlier rainfall events have resulted in farmers already benefiting from a payout, with two additional payouts pending. While there were no losses in those instances, rainfall levels exceeded the agreed threshold, making way for payments to be made.

For decades, the Government’s role has been to create an enabling environment for rice cultivation in Guyana through strategic policies, infrastructure development, research, and continuous engagement with stakeholders. It does not determine the price for paddy. Paddy is sold to millers, and those millers, in turn, sell rice on the international market where prices are dictated by global supply and demand. While Government policies and interventions can influence paddy prices, any suggestion that the Government directly determines those prices is fundamentally incorrect and reflects a deliberate attempt to mislead farmers.

If it has not been made clear enough in the past, it must be reiterated that Guyana is a price taker in the global rice market. Over the last two to three crops, major rice-producing and exporting nations such as India, Vietnam, and  Brazil have recorded increased production and significant stockpiles, placing downward pressure on international prices. Guyana, as an export-oriented rice-producing nation, is directly impacted by these global developments and cannot be insulated from them.  Furthermore, Minister Mustapha has been engaging millers at every stage of the crop to ensure farmers receive the best  prices. These engagements are still ongoing.

Since returning to office in 2020, the PPP/C Government has injected billions of dollars into the rice sector to cushion farmers and strengthen production. Over $3.1 billion in fertilizer support has been provided, more than $96 million in seed paddy distributed, and additional resources deployed to combat paddy bug infestations. When prices fell during the first crop of 2025, the Government intervened decisively with a $300 per bag subsidy, ensuring farmers received no less than $4,000 per bag. This amounted to approximately $1.9 billion in direct support. It is this support and investment into the industry that saw Guyana surpass the 700,000-tonne production mark in 2024, having produced 725,282   tonnes, with  rice production expected to surpass 820,000 tonnes in 2026, having produced 810,299 tonnes in 2025.

In addition to direct financial support, the Government has implemented a range of measures to strengthen the industry.  These include the reduction and eventual removal of commissions paid to the Guyana Rice Development Board on exported rice, the reversal of increased land rental and drainage and irrigation charges imposed by the previous administration, the provision of seed paddy and improved rice varieties, and substantial investments in paddy bug control, as well as drainage and irrigation infrastructure, including dam rehabilitation and maintenance.

At the same time, the Government has continued to implement practical measures to build resilience within the industry. Hope-like canals are being constructed in Regions Three, Five, and Six to improve drainage and reduce flooding. Drying floors and storage facilities have been developed to enhance post-harvest handling,  while farmers are being organized into clusters to better manage machinery provided by the Government, ensuring efficiency and shared access.

Investment is also ongoing in research to develop new and improved rice varieties,  while extension services are being modernized to provide farmers with timely, technology-driven support. Farm-to-market roads are being upgraded and expanded to ease transportation challenges, and new markets are continuously being secured through government-to-government arrangements to guarantee demand for Guyana’s rice.

Mr. Harbhajan should also familiarize himself with the current policies to improve the rice sector that are being implemented by the Government under the leadership of H.E. President Dr. Mohamed  Irfaan Ali. Through the  Ministry of Agriculture, President Ali has advanced a structured diversification strategy to strengthen resilience in the rice industry. Central to this approach is engaging farmers to convert one acre out of every ten acres of rice cultivation into alternative, high-value ventures, reducing farmers’ exposure to fluctuations in a single commodity. Farmers are being encouraged to explore opportunities such as cage farming for crabs, aquaculture, and expansion into other livestock and agricultural products, alongside the cultivation of high-value crops, including coconuts, spices, cocoa, coffee, hemp, and millet. This is being supported by investments in modern storage infrastructure,  improvements in the rice grading system, and mechanisms to stabilize prices and manage volatility.

At the same time, the Government is rolling out technology-driven extension services to provide farmers with real-time access to information on weather patterns and disease management via mobile platforms, while targeted support continues through fertilizer assistance and direct financial interventions aimed at reducing production costs.

Mr. Harbhajan speaks with a confidence that is as misplaced as it is alarming. Such statements are designed to mislead rather than inform, and they undermine the confidence of farmers who deserve accurate and responsible communication.

While challenges with flooding due to prolonged rainfall and the decline in rice prices are not unique to Guyana,  the  PPP/C  Government has responded with strong, targeted, and sustained interventions to cushion farmers and promote the long-term viability of the rice industry. Mr. Harbhajan’s attempt to paint a picture of collapse is a clear example of political opportunism at its worst. Guyana’s rice industry will continue to expand,  with the government remaining committed and resolute in its efforts to improve the technology, invest in new varieties,  upgrade drainage systems, and make more land available for cultivation.