Costa Rica: Local Rice 20% More Expensive than Imported Rice

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.

Monday, February 8, 2016

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).

Both producers and government representatives oppose the request made by industry, arguing, as reported on Nacion.com that "... it is contrary to their interests."

"The argument used by the industry to request the repeal was precisely that it is cheaper to buy raw material (grain in the husk) internationally than produce it in the country. This was expressed in a request for joint action filed with the Tribunal Administrative Court. In this coadyuvante they support the repeal of the decree that set domestic prices for rice. "

Nacion.com adds that "... The lower international price relative to the local price started in the second quarter of 2009, with two short exceptions in mid-2013. This situation has now been going on for almost six years. This fact was revealed by data obtained from the National Rice Corporation (Conarroz), whose comparison includes the payment of entry fees or taxes which was 35% up until 31 December. "

More on this topic

The Reality of the Rice Market in Costa Rica

May 2017

68% of rice sales in the market are managed by 3 large companies, and 12% of the profits generated by the premiums are concentrated in a single company.

A study by the Chamber of Commerce concluded that the fixing by decree of the price of rice not only did not result in improvements in productivity, but also revealed the way in which the amount of area sown is distributed as well as the profits of rice trading companies in the local market.

Costa Rica: NO to Fixing Rice Prices

April 2017

The Commission for the Promotion of Competition is opposed to the fixing of grain prices, the only good in the country whose price is established by decree.

Although Corporación Arrocera Nacional (Conarroz) continues to insist on the negative effect of freeing up the price of rice, the Commission for the Promotion of Competition (Coprocom) is maintaining its stance against the measure, arguing that it has not served to increase the volume produced or improve the productivity of the rice sector.

Costa Rica: Local Rice Becoming Increasingly Uncompetitive

January 2017

Imports of husked rice grew by almost 200% between the periods 2011-2012 and 2015-2016, and even when paying a tariff of more than 35%, imports easily compete with the subsidized local product.

The competitiveness of imported rice is such that "... it is estimated that for the current period (1 July 2016 to 30 June 2017), purchases will reach 54,000 tons. That is almost three months consumption, in that presentation alone." 

Precautionary Measures on Rice Imports Rejected

November 2011

The Costa Rican Administrative Court has rejected rice farmers’ request for precautionary measures on October's rice imports.

The request asked to deny entry authorization to 350,000 kilos of husked rice from Argentina, on the basis that it did not comply with the rule that stipulates that rice must be fortified in its country of origin.

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