Govt agencies to buy some produce directly as farmers loses 50 percent earnings due to coronavirus

Last Updated on Thursday, 24 September 2020, 10:28 by Denis Chabrol

A recent study by the Food and Agriculture Organisation (FAO) shows that since the start of the the coronavirus, COVID-19, farmers are losing income by between 20 and 50 percent, causing government to decide to buy produce directly from them, according to Agriculture Minister Zulfikar Mustapha.

He noted that due to COVID-19, restaurant and food establishments are opening limited hours and so the sales of farmers/businesses have declined.

He said after the COVID-19 pandemic is over another opportunity is a Public Procurement System of agriculture commodities to the government institutions such as the army, hospitals and school feeding program be sourced from farmers or farmers’ groups.

“These public intuitions are in constant need of agriculture produce and can be an outlet for farm supply. These facilities already spend government money to purchase food, therefore, we will direct a certain percentage to local farmers/ businesses,” he said.

Addressing Wednesday’s extensive discussion organised by the Guyana Manufacturing and Services Association (GMSA) on the  topic “Opportunities for strengthening the Value Chain and expanding agriculture in a post COVID-19 Environment”, Mr. Mustapha said a recent regional assessment by the United Nations Food and Agriculture Organisation (FAO) and the Caribbean Community (CARICOM) on the impacts of COVID-19 on Food Security and the Agriculture sector shows that there has been a decline in farmers income – on average of 20-50% income loss of farmers.

He said food traders have experienced difficulties in transporting food items over the past three months and they have also recorded a reduction in customers and  so the level of sales has decreased.

Other problems, he said, facing farmers are reported difficulty accessing agriculture inputs – seeds and planting materials, and fertilizer and pesticides, increased prices of seeds/fertilizer, scarcity of seed varieties/ planting material, fertilizers and pesticides).

The Agriculture Minister said input suppliers and food traders have recorded lower sales due to business restrictions, client’s restrictions and higher operating cost of agri-businesses. With agri-businesses expected to continue facing difficulties, Mr. Mustapha government agencies need to buy more directly from farmers. “These public intuitions are in constant need of agriculture produce and can be an outlet for farm supply. These facilities already spend government money to purchase food, therefore, we will direct a certain percentage to local farmers/ businesses,” he said.