Guyana is looking for another record rice harvest in 2025, but the global market is not favourable, as a slump in global prices poses challenges for exporters.
What did the President say about rice harvest and global rice prices?
On Tuesday, President Dr Irfaan Ali said that global rice production has reached the highest level as the major rice producers and exporters record stockpiles. This oversupply has sparked a slump in global rice prices, dampening the prospects for local farmers. At present, the global rice prices for white stand at US$416 per tonne, a figure far below what local stakeholders had expected. Despite the price pressures, the government has invested billions of dollars into the industry to ensure farmers remain protected. Not only this, but the govt. has also provided price support $2 billion, ensuring farmers receive at least $4,000 per bag of paddy.
What the govt. do further to tackle the slump in global rice prices?
Additionally, govt. also supplied millions in fertiliser and seed paddy insurance while removing VAT on machinery, equipment and agro-chemicals and negotiating and settling Panama’s $1.5 billion debt to local millers. However, Minister of Finance Dr Ashni Singh and Agriculture Minister Zulfikar Mustapha met with millers soon and are set to meet farmers later this week to generate the strategies to lessen the impact of low global prices. Surprisingly, despite the global rice price slump, levels of production and rice harvest remain encouraging. Apparently, the second crop covers 209,000 acres, with average production at 40 bags per acre. This translates to an expected 8.3 million bags, one of the highest levels in Guyana’s history.