Construction of a $1.6 billion paddy drying and storage facility was launched at Onderneeming, Region Two, yesterday, following longstanding complaints by Essequibo Coast rice farmers about inadequate capacity and losses after harvesting.
Agriculture Minister Zulfikar Mustapha turned the sod for the facility, which will have a combined storage capacity of 10,000 metric tonnes and equipment capable of drying approximately 1,000 tonnes of paddy daily, according to a Ministry of Agriculture statement.
The contract was awarded to 4N Hardware Stores Inc., with construction expected to be completed within one year.
The ministry said the fully automated facility, sourced from Turkey and designed to European standards, will include three silos, two tower dryers, four wet storage bins and an intake and cleaning system.
Mustapha said more than 1,500 rice farmers were expected to benefit through reduced post-harvest losses and improved access to drying and storage.
The project follows earlier commitments to expand these services in Region Two. Stabroek News reported on June 1, 2025 that President Irfaan Ali had announced two drying and storage facilities during an outreach at the Anna Regina Secondary School. He said tenders would be issued within two weeks to increase capacity, reduce losses and improve grain quality. Farmers had been pressing for additional drying facilities.
The ministry’s latest statement did not explain how the Onderneeming project relates to the earlier announcement of two facilities.
The consequences of inadequate capacity were highlighted during the first crop of 2025. Stabroek News reported in April that farmers on the Essequibo Coast were experiencing delays getting paddy accepted at mills, with approximately 40 laden trucks reported near mills. Some farmers said their harvest had begun rotting in trailers, forcing them to dump paddy.
National Drainage and Irrigation Authority Chairman Lionel Wordsworth said approximately ten acres were being developed for the Onderneeming project, with additional space reserved for expansion.
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