Millers agree to raise paddy price to $3000 per bag
Rice farmers will now receive $3,000 per bag of paddy after millers agreed to raise their price during discussions with government officials earlier this week.
The announcement was made by Agriculture Minister Zulfikar Mustapha during a meeting with farmers in Region Six on Wednesday. President Dr. Irfaan Ali and Finance Minister Dr. Ashni Singh were also present.
The Head of State assured farmers that his government remains committed to supporting them through the current challenges in the global rice market. “This is not about us fighting each other. One thing you all know for sure is that you have the government that supports you,” President Ali said.
He explained that oversupply, falling prices and slow payments from some markets have made conditions difficult. To help the industry weather these pressures, the government plans to build storage facilities across rice-producing regions to stockpile as much as five million tonnes of rice in the future.
Mustapha reminded farmers that earlier this year, the government injected $2 billion into the sector by subsidising $300 per bag of paddy sold to millers. This ensured farmers received no less than $4,000 per bag. The government has also supplied fertiliser to help with the ongoing second crop.
Discussions with millers are ongoing, with two Berbice millers already confirming the new price of $3,000. “This is a work in progress. We are continuing to meet with them,” Mustapha noted.
President Ali said he has directed agriculture officials to meet with farmers across the country and report back to the Cabinet within two weeks on further measures that can be taken.
The adjustments come at a time when global rice prices have dipped due to higher yields in Asia and the resumption of exports from India and Vietnam, giving international buyers more leverage to push down prices.
