The government has released $2.76 billion in direct financial assistance to the local rice industry under the First Crop 2026 Support Programme, extending a cash grant scheme aimed at cushioning farmers against a prolonged downturn in global rice prices.

The support will reach 5,106 farmers cultivating close to 235,000 acres of land nationwide. Payments are calculated on a tiered basis according to farm size. Farmers managing 50 acres or fewer will receive $15,000 per acre, while those working larger holdings will receive $10,000 per acre.

The Minister of Agriculture said the intervention had become necessary as international market prices for rice and paddy remained depressed, squeezing margins for producers who rely on export earnings to remain viable. Many farmers had raised concerns in recent months that falling prices on the world market were eroding profits despite steady or rising yields at home. The latest disbursement forms part of a multi-year pattern of state subsidisation that has propped up the sector through several difficult crop cycles, with successive rounds of support delivered at the start of each planting season.

Region Five received the largest share of the funding, with $1.18 billion allocated to cover more than 104,000 acres, a reflection of its position as the country's principal rice growing area. The remaining allocations were spread across Regions Two, Three, Four and Six, reflecting the geographic spread of rice cultivation across the country and the government's stated aim of supporting farmers regardless of location. Officials say the regional breakdown is published to allow farmers and industry bodies to verify that funds are reaching the areas where cultivation is concentrated.

Beyond the cash grants, the government has introduced a series of measures intended to lower the baseline cost of production. Land rental and irrigation fees have been reduced, and taxes on agricultural machinery and chemicals have been abolished entirely. Officials say further work is under way to bring down the cost of seeds and fertilisers, which remain among the largest recurring expenses for farmers.

Capital investment has also been directed towards infrastructure. Construction is under way on a national fertiliser plant, which the ministry expects will reduce farmers' reliance on imported inputs and bring down costs over time. Alongside this, roughly 90,000 acres of new agricultural land have been opened across several regions. The land is intended to support crop diversification and aquaculture as well as an expansion of rice cultivation itself.

The sector has grown substantially over the past six years. Production rose from 550,000 tonnes in 2020 to an anticipated 827,000 tonnes this year, according to ministry figures. Officials point to this growth as evidence that the combination of subsidies, tax relief and infrastructure spending has kept the industry expanding even as global prices have worked against it.

The ministry has been clear that the current level of state support is not intended to be permanent. Diplomatic and trade efforts are under way to secure new export markets that would pay better prices than those currently available, with Mexico and other CARICOM member states identified as priority targets. Officials describe the pursuit of these markets as the path towards a rice industry that no longer depends on annual government intervention to remain profitable.

For now, farmers across the country will begin receiving payments under the First Crop 2026 programme in the coming weeks, with the government maintaining that the scheme will continue for as long as global prices remain unfavourable to producers.

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