The depletion of soils in Los Santos is leading producers to Darien, where rice cultivation has increased by 35% and more than 190 thousand hectares are now dedicated to raising livestock.
At the close of the 2015-16 crop year in the province of Darien almost 5,000 hectares were planted with rice and 192,000 hectares dedicated to cattle, two activities that until recently used to be concentrated in the province of Los Santos.In the case of rice, the increase is 35% from the agricultural year 2012-2013. In Darien,"... their soil moisture, land availability and proximity to the capital city have combined to the benefit of the productive sector."
The draft decree establishes minimum and maximum prices for certain presentations of national and imported products.
From a statement issued by the Ministry of Economy, Trade and Industry:
Starting from Monday 27 June, the Ministry of Economy, Industry and Commerce (MEIC), will be holding Public Consultations for the amendment of Executive Decree No. 38884-MEIC, which seeks a reduction in the price of milled rice for end consumers.With this modification the price of milled rice sold in the country will be established temporarily and gradually.
The increase in 5,800 hectares in the amount of land planted with rice in 2015 will lead to an increase in local production which will reduce imports required to complete supply of the domestic market by almost 50%.
An article on Laestrella.com.pa reports that Jorge Arango, Minister of Agricultural development, said that "... the country has increased domestic production of rice this year, therefore imports of this grain will be reduced ' by nearly half 'what was imported in previous years. "
The gap gets bigger and industrialists have once again brought the subject up for discussion by asking for a repeal of the decree which since June 2015 has fixed grain prices in the country.
Despite the fact that since 2009 the international price has been consistently below the local price, in Costa Rica the government insists on protecting producers, who are opposed to the request made by industrialists to eliminate the decree which has kept prices fixed since June 2015. The formal request for derogation was submitted in November 2015 by the National Association of Manufacturers in the Rice Sector (Aninsa).
The National Insurance Institute has announced it will modify two regulations so that non irrigated rice crops can once again receive coverage which was suspended earlier this year.
Rice farmers who grow grain on unirrigated land may be eligible sometime before March to be covered by the National Insurance Institute (INS) which suspended coverage earlier this year. The state run company sought to protect itself in the face of losses of up to $4 million caused by a high claim rate in 2015 for those crops.
Having been affected in the last two years by losses in this category, the state insurance provider has suspended the issuance of policies for rain fed rice harvests, and plans to make changes to the insurance terms.
Authorities at the Ministry of Agriculture plan to ask the National Insurance Institute (INS) to reconsider the measure in the North Huetar and Atlantic Huetar regions, where rice farmers are complaining that they have already planted a significant amount of land. Losses incurred by the state-run insurer with this policy in 2015 exceeded $4 million.
From 2016 grain importers will go from paying the current 40% import tariff to 36% in 2016 and it will continue to decline until it reaches 0% in 2023.
The rice producing sector in El Salvador is trying to prepare for the start of the process of tariff elimination on imports of the grain, which already next year will be reduced by 4% from the current rate. This elimination comes on top of the current competitiveness problems facing the sector, with the rate eventually going down to 0% in 2023.
In 2016 scheduled tariff reductions for rice imports begin as part of the DR-CAFTA, posing a threat to local producers.
Nicaraguan rice producers have pointed to the efforts made by the sector to achieve self-sufficiency in supplying the local market, and report that the main competitor unleashed by this tariff reduction is the US which they point out subsidizes rice production.
The government will have to refund consumers for the overprice paid on rice between May 15, 2013 and June 7, 2015.
A ruling by the Contentious Administrative and Civil Finance Court has established that during the period in question, the national price, which is set by law, was higher than the international price, therefore the government must return the difference by making a downward adjustment to the price.
Despite the fact that grain imports continues to increase, an agreement has been made to raise the price per hundredweight of rice paid by industrial producers to $24.5.
In their enthusiasm to protect domestic agricultural production, the Ministry of Agricultural Development has agreed with producers to increase the price paid per hundredweight of rice produced to $24.50.
As part of the Agritrade Platform, Guatemala will participate for the 27th time in PMA Fresh Summit, the most important international trade show and convention of fruits and vegetables in the United States, which will take place at Anaheim Convention Center, California from October 17th to 19th.
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