Dear Editor,
Guyana is largely a price taker in the global rice market and continues to be impacted by the fragility of international commodity prices. By mid-2025, rice export revenue, which accounted for approximately 13.4 percent of non-oil export earnings, was adversely affected by the global rice glut, with projections indicating that low rice prices could persist into 2026.
To ensure the rice industry’s long-term stability, authorities should proactively assess the price threshold in the coming years for farmers and, in addition to efforts to lower production costs, foster the industry’s competitiveness with leading rice-producing countries. The government’s recent interventions, including substantial subsidies for rice farmers, are timely and commendable. However, encouraging farmers to increase paddy yield per acre and adopt efficiency measures can lower the average cost of production, making the sector more competitive.
By incentivising higher-yield practices, the government can help farmers offset price fluctuations. Additionally, authorities’ efforts are in the right direction, supporting improvements in drying and storage facilities, especially compared with major producers such as Thailand and India, which have extensive storage infrastructure. Moreover, the authorities’ plan to establish a Rice Stabilisation Fund is a strategic move to help the industry manage financial instability caused by fluctuating rice prices by accumulating savings during prosperous periods. By combining targeted fiscal support with ongoing efforts to improve productivity and reduce costs, Guyana can build a more resilient rice industry.