The retail price cap as stipulated in a decree issued by the government, $ 3.70 for 5 lbs, prevents traders from profiting from their sale, so they just do not buy it or offer it.
The article in Elheraldo.hn states "The price offered by traders in El Salvador and Nicaragua is all too tempting for producers in Honduras, to the point where although the harvest is still on the field, the money has been already been disbursed."
The crisis of red beans, a key component of Hondurans diet, extends across the country.
Up to 30% of the first harvest of beans in Honduras was funded in El Salvador.
Luis Donaire, president of PROGRANO, commented that the producers are returning to get financing from El Salvador, a situation attributed to lack of funding from the Honduran government institutions such as the National Bank for Agricultural Development.
The competition to secure supplies of beans has led Salvadoran importers to buy in advance Honduras’ harvest.
An article in the Honduran news portal El Heraldo reports statements by Luis Donaire, from the agricultural union PROGRANO, "Producers have turned again to El Salvador for funding. Some have planted by their own efforts, but between 25% and 30% have used Salvadoran funds"
A quintal of the grain has gone from $43 to $26 in traditional areas of production, and Nicaraguan growers fear they will not be able to recover investment costs.
The restrictions imposed by the government on the export of beans has led to a fall in the price of grain of up to 40 percent in production areas in northern Nicaragua, going from a price of between C $900 and C $1,000 córdobas to C$600 cordobas ($39 to $43 per quintal to only $26), reports ElNuevoDiario.com.ni.
Producers in Costa Rica must further improve their productivity if they want to compete with the low prices offered for the same product internationally.
Currently a quintal of the grain sells in Costa Rica for around $40, whereas inside the Costa Rican market producers are trying to sell their harvest for $60, arguing that industrialists are offering them at lower prices in order to buy their production.
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