Paddy Price Crash – Rice farmers turn to artisanal rum production

Faced with the collapse of paddy prices in the Alaotra-Mangoro region, farmers are turning to the production of artisanal rum. A reconversion dictated by economic urgency.

Out of necessity. The crash in paddy prices is disrupting the household economy of farming families in the Alaotra-Mangoro region. Currently sold between 900 and 1,100 ariary per kilo, rice no longer allows many producers to cover their expenses or repay loans contracted from microfinance institutions. In several rural communes, some farmers have chosen an unexpected path: the production of artisanal rum (highly valued by enthusiasts) to ensure their families’ survival.

In the rural commune of Manakambahiny Ouest, three heads of families have pooled their resources to launch this activity. All agreed to testify under condition of anonymity, fearing potential reprisals despite the evolution of regulations regarding the commercialization of artisanal alcohol.

“I have to repay more than three million ariary to a bank before the end of July. With the current price of paddy, I would have to sell more than three tons of rice, while my harvest does not even reach that volume. I had no other choice but to make artisanal rum,” confesses Rakoto, a pseudonym.

His fellow traveler in misfortune, Rakotozanany, also points to a decision made out of necessity. “We produce about 50 liters per week. The liter is sold between 4,000 and 8,000 ariary depending on the quality, which represents nearly 200,000 to 400,000 ariary in weekly revenue. It’s not a luxury, but it’s what allows us to keep living.”

A diversification imposed by the crisis: For these farmers, this conversion is not an abandonment of rice farming, but a survival strategy. Ramarokoto explains that banks continue to demand full repayment of loans, without taking into account the market crash. “We are forced to sell more rice to pay off our debts. But if we sell our entire harvest, what will be left to feed our families until the next season?”

The production of artisanal rum relies on rudimentary means. Producers use 250 to 400 kilograms of sugarcane, a large barrel transformed into a still, and significant amounts of firewood to ensure distillation. It is a demanding activity, but one that has become more profitable than selling paddy in the current context. This situation illustrates the fragility of Madagascar’s main rice-growing region. When the price of paddy collapses, thousands of families see their financial balance waver. Pending a market improvement or state support measures, some producers have no alternative but to diversify their income, even if it means taking paths they never imagined a few months ago.

Captured & Published at: 2026-06-29 06:00:19 (Madagascar Local Time EAT)
Original Source: https://www.lexpress.mg/2026/06/chute-du-prix-du-paddy-des-riziculteurs.html

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