Members of Fecarroz, the regional rice farmers' organization, agreed that international prices are likely to remain high. The only solution, they said, was to improve productivity and import less.
Nicaragua was chosen to coordinate research and development of the crop.
Paddy rice which Nicaragua used to buy from the U.S. is now being imported from South America.
" ... The decision was made by consensus with PROARROZ and NAAR, because of the losses recorded by the industry due to the poor quality of U.S. rice . "
A Ministerial Agreement from the Ministry of Development, Industry and Trade (Mific) talks about replacing the volume, where it is affirmed "there will be an increase of 35,311 tonnes in the tariff quota for imports of husk rice, classified under tariff item 1006.10.90.00 of the Central American Tariff System (SAC) ", reported Elnuevodiario.com.ni.
The producer's union estimates that in 2017 grain imports will go up 5% due to the reduction suffered by local production because of climate effects.
Members of the Guatemalan Rice Association plan to invest in agricultural technology and provide more support to small farmers in order to improve their productivity in light of the start of the United States´s tariff reduction process for grain.
The Ministry of Industry and Commerce has authorized the duty free import of 4.980 metric tons of rice.
The move is in response to a deficit of 150,000 quintals in domestic production, due to poor production performance in the Colon area.
Freddy Torres, representing rice farmers said that the quota had been requested by them in the previous week, corresponding to 5% of the amount specified in the purchase and sale agreement of existing grains between the government and farmers.
Honduran producers argue that making the agreement more flexible will have a negative impact on them.
The modification of a rice restriction agreement, which allows the government to import the grain through other brokers or from the mills themselves, will bring negative consequences for domestic producers.
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