—acknowledges food-price pressures, disappointing sugar target revision
The Ministry of Agriculture has rejected APNU’s contention that the sector needs a national transformation plan, saying the opposition’s proposals are already part of the government’s programme and that the contraction in the first half of the year does not reflect the longer-term production record.
In a statement responding to APNU’s Agriculture Month proposals, the ministry nevertheless acknowledged concerns about rising food prices, sugar production and the need to judge public investment by results.
“Of course, expenditure alone does not establish success. Infrastructure must become operational, cultivated acreage must expand, productivity must improve, and farmers must derive greater income from their production,” it stated.
The response follows APNU’s call for a national agricultural transformation plan and an independent operational and financial review of the Guyana Sugar Corporation (GuySuCo). Kiskadee Watch reported on October 26 that the coalition questioned whether increased expenditure was delivering sufficient improvements in production, farmers’ livelihoods and food affordability.
The ministry accepted that agriculture, forestry and fishing contracted by 0.5 per cent during the first half of 2026. However, it said the decline was principally attributable to a 6.4 per cent contraction in other crops following sustained above-normal rainfall, which disrupted planting, damaged crops and restricted access to farmland.
It contrasted this with reported growth of 19.3 per cent in sugar, 4.4 per cent in rice, 17.5 per cent in livestock, 15.4 per cent in forestry and 4.1 per cent in fishing.
“Therefore, the evidence does not establish a generalised decline across agriculture. It establishes a contraction concentrated in one subsector, notwithstanding positive growth in the others,” the ministry said.
It also presented a comparison of the periods under the APNU+AFC and PPP/C administrations. According to the ministry, the sector’s constant-price value declined from approximately $224.9 billion in 2015 to $192.2 billion in 2020, before increasing to approximately $437 billion in 2025.
The ministry put the corresponding annualised rates at a contraction of approximately 3.1 per cent between 2015 and 2020 and growth of approximately 17.9 per cent between 2020 and 2025. It said the figures measured changes in real output rather than price increases.
On policy, it argued that APNU’s proposals for climate-resilient infrastructure, financing, research, agro-processing and export development were already incorporated into the government’s agenda.
It cited plans to develop an additional 100,000 acres of arable land, expand drainage and irrigation, improve logistics and processing facilities, and strengthen access to domestic and regional markets.
Budget 2026 allocated $113.2 billion to agriculture, including $81.9 billion for drainage and irrigation, the ministry said. It also pointed to the Guyana Development Bank, through which it said eligible farmers and other small businesses could obtain loans of up to $3 million without interest or collateral.
APNU had acknowledged the effects of heavy rainfall but argued that climate change required sustained preparation for flooding and drought. Its proposals included water storage, resilient crop varieties, cold storage, affordable credit, crop insurance and stronger research and extension services. The coalition also highlighted the reduction in projected annual agricultural growth from 7.6 per cent to 2.9 per cent.
The ministry devoted a substantial part of its response to sugar, accusing APNU of overlooking the consequences of the former administration’s closure of the Wales, East Demerara, Rose Hall and Skeldon estates.
It said the closures affected 7,047 permanent and temporary workers and dismantled productive capacity that could not be restored simply by reopening factories. Rehabilitation required replanting, drainage works, machinery, factory repairs and the recruitment and training of workers, it argued.
However, the ministry said existing operational and management shortcomings should not be excused.
“The downward revision of the 2026 sugar production target is disappointing and demonstrates the work that remains,” it stated.
The annual target was reduced from 100,000 tonnes to 70,401 tonnes following first-crop production of 19,031 tonnes, according to the figures cited in APNU’s statement and previously reported by Kiskadee Watch.
GuySuCo’s financial position has also come under renewed scrutiny. Kiskadee Watch reported on October 25 that its 2025 annual report recorded a $16.9 billion net loss and that the auditors issued a disclaimer of opinion on the accounts.
Production increased from 47,108 tonnes in 2024 to 59,600 tonnes in 2025 but remained substantially below the approximately 100,000-tonne target. Chairman Paul Cheong cited adverse weather, low cane-harvester attendance and factory inefficiencies among the constraints.
On food prices, the ministry accepted that the 6.7 per cent increase between December 2025 and June 2026 was a legitimate concern. It argued, however, that prices were influenced by weather, imported inflation, transport costs, distribution margins and demand, as well as domestic production.
It cited farmers’ markets, planting materials, technical assistance, storage and agro-processing among its responses. It also said approximately $2.8 billion had been distributed to 5,106 rice farmers during the first half of the year and that crop-insurance payments had commenced.
The ministry maintained that falling rice export receipts did not necessarily indicate declining production, since earnings also depended on export volumes, prices and market conditions.
It concluded that agricultural investment should be assessed against cultivated acreage, yields, operational infrastructure, exports, farmers’ incomes and affordable food, while insisting that the government already had a funded programme addressing those objectives.
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