Guyana: Economist Discusses Agricultural Initiatives in Guyana

Economist Joel Bhagwandin has commented on the recent agricultural initiatives undertaken by the Government of Guyana across Regions Five, Six, Eight, and Nine. He suggests that these efforts should be seen as part of a larger strategy aimed at transforming the non-oil economy and enhancing long-term food security in the country. In a letter published in daily newspapers, Bhagwandin emphasized that the focus of the agriculture sector is not merely on increasing production but rather on structural transformation.

He noted that the government’s agricultural drive is closely linked to the food security agenda for 2030, particularly as Guyana’s annual food import bill approaches GYD 200 billion, influenced by global prices and demand. Bhagwandin stated, “The message from the field is clear: agriculture is no longer being expanded only along traditional lines. It is being widened into a broader production system capable of displacing imports, creating new value chains, and contributing more materially to agricultural GDP and the non-oil economy.”

Bhagwandin pointed to pilot projects in beet and onion cultivation, as well as the scaling up of corn and soya production, as indicators of efforts to develop previously underdeveloped agricultural sub-sectors. He also mentioned investments in agro-processing, poultry, and aquaculture as part of a broader production model focused on import substitution and value-added production.

He highlighted that the government has allocated GYD 113.2 billion for the agriculture sector in Budget 2026, with GYD 81.9 billion specifically for drainage and irrigation works. Bhagwandin remarked that these allocations reflect a strategy to expand the non-oil production base while utilizing oil revenues to support such initiatives.

Currently, Guyana has approximately 1.04 million acres of agricultural land, with around 32 percent under cultivation. The government’s plan to develop 100,000 acres of new arable land by 2030 aims to increase this to about 42 percent. Bhagwandin emphasized that the focus is on expanding the productive potential of the sector rather than just marginal output increases.

He also noted tax incentives from Budget 2026, including the removal of corporate taxes on agriculture and agro-processing businesses, aimed at improving reinvestment and production capacity. However, he cautioned that increased public spending alone will not ensure success if local producers cannot access necessary financing.

Bhagwandin referenced estimates indicating that household income in Guyana is expected to rise significantly, which will likely increase demand for food and agricultural products. He raised concerns about whether this demand will be met by local producers or continue to be satisfied through imports.

He concluded by stating that agriculture is central to Guyana’s long-term non-oil development strategy and, if managed effectively, could become a major pillar of the economy beyond 2030. Bhagwandin expressed optimism that the government is on the right track with its current initiatives.

Source: snn.gy