Guyana implements measures to reduce agricultural costs and food prices

The Guyanese government has implemented several measures to reduce agricultural production costs and combat rising food prices. President Irfaan Ali announced that the reversal of a 220% increase in drainage and irrigation fees, along with a 600% increase in land rental fees, is saving farmers approximately $1.4 billion annually.

To further lower costs, the government has removed Value Added Tax (VAT) on machinery, equipment, fertilizers, agrochemicals, and pesticides. Additionally, the removal of excise tax on fuel is intended to provide significant long-term savings for the agricultural sector.

To address food inflation, which rose by 6.7% in the first half of the year according to the 2026 Mid-Year Report, the government is rolling out a nationwide farmers’ market initiative through the Guyana Marketing Corporation. This program aims to connect farmers directly to consumers, narrowing the gap between wholesale and retail prices and providing farmers with consistent market access.