Costa Rican Rice Producers Win $28 million Lawsuit

A court ruling has annulled a government decree which set a minimum price for the grain, forcing the government to pay for the material damage that this rule has caused.

Thursday, July 19, 2012

Once this judgement has been confirmed, the $28 million, estimated by experts acting in the litigation as the amount the State must pay to producers, will be added to the $104 million that these producers received during 2011 as a grant.

An article in Nacion.com reports that "The Civil and Administrative Tribunal annulled Finance Executive Decree 36247-MEIC No., which set a minimum selling price of a sack of rice at ¢20,050. The suit was brought by rice farmers from across the country in 2011, against the State. They petitioned for an annulment of the decree published in 2010, which set the selling price of the grain to industry. "



More on this topic

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

February 2016

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).

Extension of Rice Protectionism in Costa Rica

January 2014

The extension of the deadline for the implementation of the decree that eliminates the rice price fixing mechanism, represents a transfer of $75 million from the pockets of consumers towards the rice sector.

For years other countries have criticized the pricing of rice in Costa Rica considering it a subsidy and violation of defined limits.

Changes to Rice Price System in Costa Rica

April 2013

The National Rice Corporation and the Government have agreed to move towards an alternative to the price fixing scheme.

"It was also decided to establish a process of transition to manage the market and increase productivity in the sector, which should be ready this week," reported Elfinancierocr.com.

Rice in Costa Rica: A Sweet Deal

July 2012

In the past four years, the number of farmers engaged in rice production increased from 743 to 1,200, drawn by a fixed price system which in 2011 was covered by a subsidy amounting to $104 million.

The recent judgment by the Administrative Court annulling a presidential decree and ordering an increase in the price of a 73 kilo bag of rice to almost $49, confirms the wisdom of farmers who switched to growing the grain, confident that the subsidy levels would continue at astonishing levels, despite protests from other countries, the opinion of the World Trade Organization (WTO), and consumers of a product based on the local food basket, who pay one of the highest prices in the world for rice.

 close (x)

Receive more news about Agronomy

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Megaprocesos

Organization that operates in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama.
Phone: (502) 23107454

Company Profile

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Nov 27)
Brent Crude Oil
48.300
Coffee "C"
124.25
Gold
1,787
Silver
22.68