The government will continue to make lands available to CARICOM nationals for agricultural production and agro-processing facilities in order to increase regional food production, Minister of Agriculture Robert Persaud says.
He also assured that the current budgetary allocation to the agricultural sector was government’s commitment to maintaining food security and ensuring that there were no steep rises in the cost of food commodities produced locally.
Meanwhile plans for a US$20.9 million loan from the Inter-American Development Bank (IDB) for an agricultural diversification programme and another US$6.8 million from the International Fund for Agricultural Development (IFAD) are being finalized.
In his presentation on the budget in the National Assembly on Thursday Persaud said that the government will continue to support and implement the recommendations of the recent CARICOM Heads of Government meeting to ensure the adequate supply and distribution of food intra-regionally.
He said the government will continue to take the lead within the context of the wider regional programme under the Jagdeo Initiative.
On food security locally, he noted that Guyana was already self-sufficient in poultry and other meats, fish, eggs, fruits and vegetables, which countered the severe effects of rising food prices locally.
However, he noted that small farmers will continue to face constraints such as rising fuel prices, which will increase the cost of agricultural inputs such as fertilizers, and transportation costs; limited access to financial products; climate change; and changing global trade regimes.
The budget would continue to address these issues and other constraints by supporting small farmers through Ministry of Agriculture programmes.
The removal of the Value Added Tax (VAT) on peanuts, paddy and essential equipment and gear for the fisheries sector will bring “enormous benefits for the sector,” he said.
He gave a detailed presentation on the achievements in the various agricultural sectors such as rice, sugar, fisheries, aquaculture, non-traditional crops, livestock, forestry and climate change and agro-energy/bio-fuel.
Persaud said also that the ministry would further the drive toward a market-led development of non-traditional sub-sectors to enable diversification leading to enhanced exports, incomes and employment.
Noting that this year’s agricultural budget was less than 2007, he said that public safety and national security was very relevant to all Guyanese.
The nature of farming, he said, requires a safe and secure environment and therefore resources must be so prioritized.
“Every time a farmer is targeted, we take food away from all our tables,” he said.
Supporting the budget as presented by Finance Minister Dr Ashni Singh, he said that it comes at a time when world market prices for many food crops, especially wheat, soybean meal and maize, have risen significantly. This occurrence, he said, is presenting a number of opportunities for local farmers and for the agricultural sector.
In terms of specific objectives for the rice sector, he expects that Guyana would be able to satisfy its preferential markets and also the emerging markets in Central and South America.
He said too that farmers’ field schools would be expanded countrywide; and the Guyana Rice Development Board will work with the Rice Producers’ Association to reduce fertilizer costs.
Zero rating
Government, he said, will also zero rate VAT on paddy, machinery, equipment or components used in the generation of renewable energy in the agriculture sector using agricultural by-products.
On the sugar front it is projected that 290,000 tonnes of sugar would be produced. A land conversion programme is expected to increase lands accommodating mechanized harvesting, while work is ongoing with private farmers to mechanise operations.
With the new Skeldon factory, including the bagasse generating plant coming on stream this year, he said that the factory output is expected to increase by 38.8%.
Tuna
In relation to fisheries, plans are in train for Guyana to join the International Commission for the Conservation of Atlantic Tunas (ICCAT) allowing fishermen to target deep sea tuna and tuna-like species, Persaud said. He said too that the fisheries department in the ministry would be collaborating with external agencies in assessing the status of important fisheries resources such as the Atlantic seabob and grey snapper.
In aquaculture, it is expected that the tilapia hatchery at Mon Repos being built at a cost of $10 million would be completed in May to provide tilapia fingerlings to small farmers.
Speaking about a US$20.9 million loan from the IDB for an agricultural diversification programme (ADP), Persaud said that the ADP’s objective is to increase Guyana’s export growth rate and reduce its volatility by focusing on developing commodity chains of non-traditional products.
The US$6.8 million from IFAD, he said, is to support government’s Rural Enter-prise Agricultural Develop-ment (READ) project which is aimed at strengthening intermediary service pro-viders, institutions whose services add value to production and marketing systems, and increase rural welfare.
This project is expected to work closely with the New GMC, the National Agricultural Research Institute and the Rural Women’s Network, among other entities.