Budget will make Guyana agri powerhouse - Mustapha

Minister of Agriculture Zulfikar Mustapha says that the agri sector is about to “take off” with this year’s budgetary allocation of $22.6B, which he vowed will see the country being the “bread basket” of the Caribbean and the agriculture “powerhouse” of the hemisphere.

Mustapha was at the time concluding his 35-minute presentation on the second day of the 2021 budget debate yesterday during which he highlighted the plans for the sector within the next year.

“Budget 2021 builds on what was put forward in the 2020 emergency budget and provides the catalyst for the revitalization of the agriculture sector and lays the groundwork for the reclamation of Guyana as the bread basket of the Caribbean and the Agriculture powerhouse of this part of the hemisphere,” Mustapha told the House.

He said that he envisions an agriculture sector that encourages investment and where producers operate profitable business.

“We will build an agriculture sector that is market driven with a clear focus of the transformation of raw material into healthy processed products. We will build an agriculture sector that consistently contributes to national food security and nutrition….We want an agriculture sector that enhances rural communities through employment and livelihood generation and an agriculture sector that builds resilience to vulnerability, shocks and stress with emphasis and adaptation to climate change. That is our objective for the agriculture sector of this country,” Mustapha said.

Outlining some of the works to which funds will be allocated to in the sector, Mustapha said that the ministry will procure five long-reach sprayers to the tune of $7M which will aid in paddy bug control and reduce the damage caused by 60%.

He added that a sum of $12B will be expended this year on the National Drainage and Irrigation Authority (NDIA) for the infrastructure for new pump stations at Adventure, Cotton Field and Montrose.

Additionally, Mustapha said that a pontoon and two excavators will be procured, specifically for the Pomeroon area to bring relief to farmers there.

“Mr. Speaker, we as a Government recognized the potential of the agriculture sector. We are not like them, putting all our eggs in one basket. We are once again seeing the contribution to our GDP by this important sector. Agriculture is here to stay and we will continue to invest in the sector,” Mustapha said.

Rice and sugar industries

According to Mustapha when the Government took over office in August 2020, the agriculture sector was in a state of “hopelessness”.

In terms of the sugar industry, Mustapha said to date there has been heavy investment in an effort to “revive” and “expand” the sector.

He argued that when the then People’s Progressive Party/Civic (PPP/C) departed office in 2015, the Guyana Sugar Corporation (GuySuCo) was on the “path to recovery”.

At that time, he said GuySuCo had recorded annual production of 231,017 tonnes of sugar.

Years after that, Mustapha noted that production continued to decrease.

He said that in 2016 183,000 tonnes of sugar was produced, 137,000 tonnes in 2017, 104,000 tonnes in 2018 and 92,000 tonnes in 2019. (Over this period four estates were shuttered)

The lowest production was recorded in 2020 when 88,000 tonnes of sugar was produced, Mustapha said.

According to Mustapha, the sugar industry must be given an opportunity not to just survive but to be “revitalized and become vibrant, efficient and profitable...”

As it relates to rice, Mustapha said that an assessment was conducted which found that farmers are enduring many challenges. As such, he said the ministry came up with solutions to tackle the problems faced.

“We are seeing once again a new interest in the agriculture sector because of the measures we have put in place,” he said.

Among the measures implemented by the Government are a reduction in land rental and drainage and irrigation (D&I) charges. “Now a farmer who use to pay $15,000 for one acre annually is now just paying just $3500 per an acre,” Mustapha stated.

The Agriculture Minister also said that the Government has begun to ensure that the monies owed to rice exporters by Panama are repaid.

“We are working to resolve that issue,” he said.

Mustapha also noted that over the last few months, “new” markets were secured in Hungary and Latvia and there was an increase in the quota to Brazil.

Instead of supplying Brazil with 24,000 tonnes of rice, Mustapha said the amount has increased to 34,000.

He declared that the ministry will continue to actively involve partners. “Farmers, fishers, agroprocessors, exporters, producers association, chamber of commerce, development agencies to ensure that we work together to fulfill our vision to be the agriculture power house in this part of the world,” he added.