‘A lifeline’- President launches premium-free crop insurance for rice farmers

To ensure they are compensated in the event of extreme weather conditions and their livelihoods are protected from increasing threat of climate change, President Dr Irfaan Ali on Tuesday launched a premium-free crop insurance venture for rice farmers.

The programme, unveiled in partnership with Indian agricultural giant United Phosphorus Limited (UPL) and Philip Morris International, will provide free insurance coverage to approximately 6,000 rice farmers, shielding them from losses caused by extreme weather events such as flooding and drought.

Importantly, farmers will not be required to pay any premiums.

The insurance scheme is part of a broader national effort to enhance food security, modernise agriculture, and promote climate-smart farming practices.

Noting that the initiative is a long-awaited reality after years of stalled progress, President Ali told those gathered at the launch in Region Two that “this programme is not just relief.”

“It is a lifeline for you.

“For years we have talked about crop insurance but little traction was made until now. This is what makes today so historic,” he said.

President Ali stressed that the government is committed to providing farmers with real support, including easier access to credit through a reformed financial system.

“We want farmers to succeed. We want farmers to become wealthy. We want you to have less tax burden and more disposable income.

“Now you can go to the bank with your insurance. We are challenging the banks: with this insurance, the risk is reduced, and the cost of lending to our farmers must reduce substantially,” he said.

As part of the programme, President Ali also announced that a pilot rice farming system will be introduced using modern technology and advanced tools to improve productivity, efficiency, and climate resilience.

Minister of Agriculture Zulfikar Mustapha welcomed the initiative as a transformative moment for the sector.

“From now, you will be covered by this product so that you can be compensated when these things happen,” he said.

In the past, Mustapha said agriculture insurance in Guyana was out of reach.

“We are the first country in the entire region that is launching a product to cover our rice farmers,” he said.

Mustapha added, “This is not just about risk reduction. It is about empowerment. It provides our rice farmers with a safety net, allowing them to plant, plan, and produce with greater confidence knowing that help is available when nature strikes hardest.”

UPL executive Jaidev Shroff praised Guyana’s leadership in supporting farmers, noting that agriculture is often the hardest hit by climate change.

The future for agriculture in Guyana is fantastic. “Farmers can not only feed the world, we believe that farmers can help decarbonize the world if they are incentivized right,” Shroff said.

With rice as one of Guyana’s leading agricultural exports, the government’s plan to extend this insurance model nationwide could set a precedent for climate-smart agriculture across the Caribbean and beyond.