Grain Prices Through the Roof

Over the course of a year prices have doubled in El Salvador, generating friction between farmers and traders.

Friday, June 24, 2011

White maize and red beans are the two types of grain whose prices have increased the most, affecting producers of other products that use grain for raw materials.

While prices keep rising, agricultural industry representatives argue that the increase is only benefiting traders.

According to an article in Laprensagrafica.com: "Guillermo Quijano, president of the Chamber of Small and Medium Producers (CAMPO), explained that a quintal of maize can be bought from the producer for $28. In the case of beans, the farmer receives about $60 per quintal from the intermediary. The largest share of the profit goes to profiteers and traders, complained Quijano. "

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More on this topic

Outlook for Central American Grains

April 2017

Taking into account the projected demand, it is expected that in the 2016/17 cycle the region will have sufficient but below average maize supplies and a slightly above average surplus of beans.

From the report "Regional Supply And Market Outlook Central America", by the Famine Early Warnings Systems Network:

El Salvador: Price of Basic Grains Regulated

July 2015

Noting that the upward trend in the prices of maize and beans is unjustified, the government has announced that it is considering submitting a bill to set minimum and maximum levels for sales.

The government argues that the rising prices seen in maize and beans have been "unjustified" and that is the reason for the possible employment of price controls, establishing a "maximum and minimum ..." explained Eugenio Chicas, spokesperson for the Sanchez Ceren administration.

Government of El Salvador Against the Free Market

February 2015

The government is preparing a decree that aims to regulate production and discover how much product is acquired by basic grain traders and where they store it.

The decree, which will come into effect in the month of February, is focused on finding out numbers and details related to the production of maize, sorghum, beans and rice, and companies who market them, who will have to provide information about the entire marketing process, from purchasing the product, its existence, volumes, and information on major retail centers.

El Salvador: ALBA Food Dominates Grain Market

June 2014

The company, part of the ALBA Petroleos conglomerate, has become the main supplier of grain to agribusinesses.

This was confirmed by Oscar Albanian, general manager of ALBA, adding that they are maintaining a reserve of 50,000 tons of basic grains, through a contract with the company Precocidos de El Salvador.

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