Mustapha says $113.2B allocation will make agriculture “the backbone” of Guyana’s diversification drive

Minister of Agriculture Zulfikar Mustapha has described Budget 2026 as a “people-centered budget designed to strengthen economic growth while uplifting communities,” with a historic allocation of $113.2 billion for the agriculture sector.

“This budget, if one has to describe this budget, it’s a people-centered budget designed to strengthen economic growth while uplifting communities,” Mustapha said, adding that it is “a strategic and inclusive roadmap for sustainable national progress.”

Focusing on agriculture, he said the sector remains central to Guyana’s development.

“A sector that has been the cornerstone of Guyana’s economy,” he stated, noting that the budget ensures “every farmer, whether on the coast, in the hinterland, or the riverine communities, deserves the full support of the government.”

Mustapha said the government’s vision is to transform Guyana into “a food-producing capital of the Caribbean,” and pointed to growth in both traditional and new crops.

“We have seen increased production in all the traditional areas, and we have now ventured into new areas… the high-value crops, corn and soya.”

He explained that the agriculture allocation has grown significantly since 2020.

“Last year, we saw that the budgetary allocation in the agriculture sector was a massive $104 billion. And again, this year we have seen increases in the allocation, $113.2 billion.”

According to the minister, the funding will support modernisation and diversification.

“This budgetary allocation will have a lot of transformative initiatives. It will deliver on our promises to the people of our country.”

He said agriculture is being positioned as a pillar of the non-oil economy.

“Our strategy is firmly grounded in developing a robust non-oil economy with agriculture serving as its backbone.”

Growth targets for 2026 were also outlined.

“Overall, real GDP growth will be set at 16.2%. Non-oil economy growth is set at 10.8%. And agriculture, forestry and the fishing sector growth is set at 7.6%.”

On sugar, Mustapha said $13.4 billion has been allocated to modernize and expand the industry.

“This investment will help to modernize our sugar factories, expand value-added production. The industry is moving towards mechanized harvesting.”

He added that the target for 2026 is “a 67.9% growth, a target of 100,041 tons of sugar.”

For rice, he noted that $430 million has been allocated and storage capacity will be expanded.

“The government has set aside $1 billion to build a storage facility so that we can also store farmers’ paddy when there are a lot of paddy in the market.”

He said the rice industry has recorded strong yields.

“We have seen yields up to 6.6 tons per hectare, and we’ll continue to promote high yielding varieties.”

Mustapha highlighted investments in other crops, livestock and fisheries.

“The other crop sector grew by 11.1%… and $3.3 billion has been allocated to this important sector.”

“The livestock sector grew by 12.5%… $1.9 billion is allocated for this important sector.”

“For the fishing sector… $1.5 billion is allocated for that important fishing industry.”

He said agro-processing will receive $745 million to move beyond primary production.

“We have been producing primary products for too long. Now we have to add value to those products.”

Drainage and irrigation were also prioritized.

“The drainage and irrigation have been allocated a budget of $81.9 billion.”

Mustapha pointed to modernization efforts including shade houses, hydroponics farms and laboratories.

“We have the largest hydroponic farms in the Caribbean right here in Guyana.”

“The Tissue Culture Lab is capable of producing a million plantlets… plant disease resistance, pest resistance.”

He also announced a major expansion in coconut cultivation.

“$195 million has been allocated to expand coconut cultivation… by almost 5,000 acres this year.”

New crops such as corn and soya beans are expected to grow.

“We are hoping that corn will grow by 8.9% this year and soya beans… a target of 22.3% in 2026.”

The minister said farmers will also benefit from policy measures with no new taxes.

“All these developments… coming to us against the backdrop without any new taxes.”

He noted that the removal of duties will directly assist farmers and fisherfolk.

“The elimination of taxes for ATVs and outboard engines under 150 horsepower… will greatly benefit our farmers, especially in hinterland communities and our fisher folks.”

Mustapha said a new credit facility through the Guyana Development Bank will support farmers.

“Farmers can go to this bank to get a loan without collaterals, without paying any interest.”

He stressed that agriculture will continue to drive food security and regional leadership.

“Our intent is clear, to build an agriculture sector that leads in regional food security.”

In closing, Mustapha said Budget 2026 reflects a balance between oil growth and diversification.

“The 2026 budget demonstrates our commitment to balance oil-driven growth with diversification while also funding the largest agricultural budget in our country’s history.”

He added: “By implementing policies that put people at the center, we are cultivating an agri-food ecosystem where our communities can prosper and succeed, always putting the needs of our citizens first.”