President Irfaan Ali
August 1 ,2021
President Irfaan Ali on Saturday announced a series of relief measures, including billions in cash grants for households and farmers that were devastated by recent flooding countrywide.
In a brief address to the nation, Ali explained that recent flooding has severely affected 300 communities and 52,000 households. The agricultural sector, he said, has suffered the greatest loss with 92,000 acres of farm and farm lands affected. The sugar industry, in particular, he noted, suffered a $1.5 billion loss in the fields.
According to Ali, initial estimates show a $23 billion in loss of production across the sector while damage to the forestry sector and loss of production and damage to equipment is estimated to be in excess of $8 billion.
Citing the devastation caused by heavy rainfall, including the inundation of homes and farmlands, and the loss of livestock, Ali in June formally declared the flooding a national disaster. In response, Ali yesterday said the government is making several direct transfers to allow farmers to “return to some level of normalcy in their homes” while supporting the agriculture sector to return to productive capacity so as to mitigate against potential food shortages.
“Farmers within the context of a homestead would receive $100,000 each. Those with kitchen gardens will receive $50,000 each. And households excluding homestead and kitchen garden will receive $50,000 each. The combined assistance to homestead farmers, kitchen gardens and households for these categories will be in excess of $3.5 billion,” he announced.
Reminding that $10 billion in supplementary spending for flood relief had been approved by the National Assembly, Ali said that while some large farmers were severely affected, especially in rice and poultry, the ceiling of assistance will not exceed $10 million for individual farmers.
Within those parameters the rice sector, which saw approximately 50,000 acres and 2000 farmers directly affected, will be offered assistance in four categories at a cost of more than $3.2 billion.
“For rice that was ready to harvest but lost in the floods, $80,000 per acre would be given to those farmers. For rice sowed and lost in the autumn crop, these farmers will receive $65,000 per acre and for land that was completely prepared but was not sowed, $45,000 per acre would be given to these farmers,” Ali announced, before adding that 60,000 bags of seed paddy would also be made available.
In the livestock industry, the 2,000 subsistence farmers, small farmers, medium farmers, and large-scale farmers affected will receive financial assistance in excess of $600 million.
These farmers will also be supported by the Ministry of Agriculture and the Guyana Livestock Development Authority through genetic improvements, drainage and irrigation works, technical support, and extension services to the approximate value of $500 million. This and ongoing infrastructural works to rebuild dams, farm-to-market access roads, hinterland roads, mining roads, community roads, drainage systems, and other infrastructure that were destroyed or deteriorated during the floods are expected to go a long way in bringing relief.
These infrastructural works are expected to bring relief to the mining community, which has had 50% of its operations affected when infrastructural damage caused by flooding cut off mining communities.
“Initial assessment estimates rehab works will cost in excess of $1 billion for the mining community,” Ali said.
The new measures are the government’s second phase response to the flooding. Ali noted that during the initial response to the flood his government focused on saving lives, protecting livelihoods, securing health services and ensuring there was enough food and shelter to satisfy the needs of the people. Consequently more than 80,000 food hampers were distributed as were 45,000 cleaning hampers and more than 5,000 medical kits.
“More than 10 shelters were established, and extensive support was given to farming communities. More than 100 pumps and hundreds of excavators were deployed all across the country to support communities and farmers. In addition to this, the government deployed an extensive fleet of machinery to support regions and communities in their efforts,” he explained.
Sharing that flood relief efforts were organised through a Cabinet task force, a multi-stakeholder national emergency operation centre and 10 regional emergency operation centres, Ali noted that UN-ECLAC will be conducting a socio-economic assessment of the overall impact to improve understanding as to the cost of this flood to the economy, regions and communities.
“Government will continue to work on an aggressive national drainage plan in the context of climate change so as to mitigate further climate events and disasters,” Ali concluded.