Excessive State Intervention in the Economy

In Costa Rica the Solis administration intends to keep the current pricing scheme for rice, ignoring technical criteria, and without applying any valid economic justification.

Monday, March 13, 2017

EDITORIAL 

Although a technical study commissioned by the Ministry of Economy itself said that the current regulatory pricing scheme does nothing to improve the productivity of rice farmers or to lower final prices, the government of Luis Guillermo Solis insists on maintaining a practice which favors a few, blocks competition on an equal footing and hurts consumers.

From a statement issued by the Chamber of Commerce:

March 10, 2017. The Chamber of Commerce in Costa Rica wishes to express its concern and total dissatisfaction with the pricing for milled rice and the proposed reform of Article 10 of Executive Decree No. 38884-MEIC of February 24 2015; reformed by Executive Decree No.39889- MEIC of July 22 2016, subject to public consultation in recent days by the Ministry.

Our arguments are based precisely on a study commissioned by the ministry itself from the Institute for Research in Economic Science at the University of Costa Rica, in which the following reasons, among others, are concluded:

• The current pricing scheme still does not take into account various aspects of the reality of both domestic and international markets.

• The pricing of rice is not contributing to important policy objectives such as increasing productivity and improving the conditions of access for consumers.



More on this topic

Rice Producers Win and Government Declares Price Adjustment

December 2019

Arguing that there are justified reasons to increase the price of pile of rice, in Costa Rica the Alvarado administration authorized a 1.9% increase in the final price to the consumer.

With the increase decreed by the Ministry of Economy, Industry and Commerce (MEIC), the price per kilo will rise from $1.06 to $1.08, for the variety with 20% broken grain, also known as 80/20.

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: Rice Prices Under Public Consultation

June 2016

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.

Costa Rica: Gradual Liberalization of Rice Price

December 2014

Instead of liberalizing the price of grain from 2015, the government is considering implementing a gradual deregulation scheme.

In order for the local price of rice to approach the international price, the Costa Rican authorities will substitute, in the first weeks of next year, the decree liberalizing the price of rice and look for "...

 close (x)

Receive more news about Government

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


Professional ink refill franchise for sale

Ink and toner refills with latest generation machinery exclusively for the franchisee in Central America, investment opportunity with fast return.
Ink and toner refills with latest generation machinery...

Stock Indexes

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

Commodities

(Sep 25)
Brent Crude Oil
42.260
Coffee "C"
115.85
Gold
1,856
Silver
22.915