Guyana launches premium-free crop insurance for rice farmers

Last Updated on Tuesday, 22 July 2025, 19:54 by Writer

Guyana on Tuesday launched premium-free crop insurance for the country’s 6,000 rice farmers to reduce the financial risk associated with damage and destruction due to floods or droughts.

Minister of Agriculture Zulfikar Mustapha said the Guyana government, his ministry, Guyana Rice Development Board, UPL Costa Rica and the United States-based Philip Morris International, have worked out an initial three-year deal to ensure that the farmers would not have to pay any premiums.

“You will be covered but you’ll not pay insurance premium every month like how the normal insurance works and this insurance product will support and cover farmers in the event of extreme adverse weather conditions such as flooding and drought,” Mr Mustapha said at the launch of the insurance product on the Essequibo Coast, a ruling People’s Progressive Party stronghold.

The Agriculture Minister said that initiative would help to reduce risk and empower farmers to plan, plant and produce “with greater confidence knowing that help is available when nature strikes hardest.”

In his remarks, President Irfaan Ali pointed out that his government was now “moving to create a minimum baseline” price of GY$4,000 per bag by providing a GY$300 per bag of paddy so that “our farmers will know that there is viability in production in their farms.”

Other initiatives had included a reduction and eventual removal of the sales commission, free paddy transportation on the ferry, and the purchase of 71,000 bags of paddy at GY$4,000 per bag. “These are things that we did because we want you to be successful,” he said.

Referring to the crop insurance deal with UPL and PMI, he rallied the rice farmers to support the ruling People’s Progressive Party Civic (PPPC) at the September 1, 2025 general elections or they risked losing that initiative. “What you’re getting today, farmers around the world are longing for but you can lose all of this in the blink of an eye if you do not do what is right for your family, your children, the rice industry, your communities and your country.”

“I’m very frank and blatant about it. There is no other government, there is no other political entity in this country that would care for farmers and rice farmers like this People’s Progressive Party Civic government,” he said. He stopped short of referring to the fact that a few Essequibians had risked voting for another government.

Although rice production has soared from 559,789 tonnes in 2021 to 725,282 tonnes in 2024 with a projection of 804,000 tonnes in 2025, and the yield has increased from 5.5 tonnes per acre to 6.6 tonnes, Mr Mustapha said the rice sector continues to wrestle with the unpredictable challenges posed by climate change from sudden droughts to unexpected floods which can devastate harvests and endanger the livelihoods of those who rely on crops.

The Agriculture Minister recalled that farmers suffered from the “worst floods” in 2021 when several areas were swamped for prolonged periods, resulting in estimated losses totalling GY$50 billion. At that time, the government had provided GY$2 billion in flood relief as well as seed paddy and fertiliser.

“As climate-related risks become more frequent and severe, it is not just a matter of chance but it’s a matter of responsibility that our farmers are protected against such risks,” he said.

“This programme is not just relief. It is a lifeline for you,” added the President. He said that was part of an overall plan to leapfrog climate-smart agriculture that is resilient and sustainable.