Velia Govaere, professor at the UNED, analyzes the situation on an article in Nacion.com, mentioning the hundreds of millions of dollars which consumers overpay for rice in Costa Rica, and stating that "most of the subsidy is benefiting less than 10 producers.” (See " Never So Much to so Few (only in Spanish).")
It is important to recognize that what is usually described as "subsidy", in this case it is not. In this case, it relates to a transfer of resources which the Costa Rican pricing system and the import monopoly awarded to Conarroz, which drifts toward rice producers.
In another article in Nación.com, some producers in the Guanacaste province, made clarifications and justified the current situation with an article called "The Truth About Rice Production".
The proposal provides for a gradual shift in the pricing mechanism.
Within general guidelines, the proposal is valid for three years and aims to improve access to credit, training as well as business management and infrastructure.
"It also contemplates signing agreements for the National Production Council (CNP) to relocate their infrastructure and improve productivity in conjunction with programs from the Institute for Cooperation on Agriculture (IICA),” reports the article in Elfinancierocr.com.
A request by the National Rice Corporation for a protectionist trade measure is being analyzed by the government.
The Costa Rican government is discussing the possible application of a safeguard measure on imports of rice from Argentina and Uruguay. The measure was requested by the National Rice Corporation (Conarroz).
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