International rice prices fall below projections – finance minister

Even as the government is lobbying for more rice markets in places like Mexico and Saudi Arabia, the Ministry of Finance’s mid-year report on Guyana’s economic performance says the international price of the grain is expected to slump far below government’s projections.

According to the document that was tabled in the National Assembly on Monday, rice prices are also expected to decline, averaging US$406 per metric tonne this year, 31 percent lower year-on-year, and markedly lower than the US$530 per metric tonne projected at the time of preparing the 2025 National Budget.

At the same time, the mid-year economic report states that the production target for the full year remains 804,000 tonnes of rice equivalent, with a growth target of 12.4 percent, buttressed by continued support to farmers and renewed efforts to secure new and more attractive markets.

Last week, the Minister of Agriculture, Zulfikar Mustapha, was quoted as saying in a statement that “samples were sent” to Saudi Arabia as part of the government’s efforts to explore new rice markets. He also said overtures were made to Mexico.

In terms of the impact of falling world rice prices, he said talks were continuing with millers to secure higher paddy prices. He said already a number of millers were paying GY$2,500 per bag. 

Guyana’s mid-year economic report also states that rice prices declined by 30.5 percent during January to June, 2025, averaging US$434.2 per metric tonne, on account of growing production and unlocked inventories in major exporting countries such as India, with additional downward pressure from a new harvest in Vietnam.

According to the finance ministry, the rice growing industry is estimated to have grown by 13.9 percent in the first half of 2025.

The Guyana Rice Development Board (GRDB), according to the document, reported production of 410,194 tonnes of rice equivalent in the first six months of this year, compared with 362,030 tonnes in the first half of 2024.

On account of favourable weather conditions, the mid-year report says the yield achieved for the first crop of 2025 was 6.6 tonnes per hectare, aligning with what was achieved in the first crop of last year.

The government, also in the finance ministry report, said it provided fertiliser support of GY$2 billion to nearly 5,300 farmers in the form of 1 bag urea per acre per crop. The report also said pesticide support was provided to manage the paddy for bug infestation benefiting over 2,352 farmers, at the end of June.

Farmers will continue to benefit from this support in the second half of 2025.

In addition, for the first time, biocontrol predators were released to control the paddy bug infestation in pilot fields. This method of paddy bug control is expected to continue with more intensity in the second crop.

Further, a comprehensive study on rice insect pest management commenced and research on the aromatic rice yield trials continued in the fields.