Honduras: Law for the Palm Sector

A bill is being discussed in Congress to facilitate financing for producers and to support them in certifying the quality of their plantations.

Wednesday, September 4, 2019

Because of the complex scenario faced by African palm producers because of low international prices, the Hernandez administration presented to Congress the bill "Law for the Strengthening of the Productive Sector of Oil Palm."

Laprensa.hn reports that "... according to the Executive, it will achieve, among other points, to propitiate the legal framework and financial mechanisms or schemes that allow access to financing for oil palm producers; to strengthen the industry through the adoption of sound agricultural practices that lead to obtaining quality and environmental certification of herbicide-free plantations. There will also be crop diversification and value will be added to the industry through business alternatives derived from the production of biofuel, bi-gas and other renewable energy schemes.

See "Palm Oil: Exports Up to September 2018" and "Palm Oil: Emergency Is Declared for Low Prices

Héctor Castro, leader of the palm sector, explained that "... with the validity of this law, producers will be able to access fresh resources from the financial system to recover their plantations. The situation is fragile, as some plantations have lost between 30% and 40% of their production."

According to reports from CentralAmericaData, between February 2016 and March 2017, the average price of Central American palm oil exports reported a 37% increase, rising from $0.54 per kilo to $0.74 per kilo, but that trend then reversed, falling from $0.70 per kilo recorded in April 2017 to $0.53 per kilo in March this year.

This bill seeks to complement actions that are already being implemented, such as the program to change the conditions of debts of producers and traders of palm oil, who will have until December 31, 2019 to request the refinancing or readjustment of loans they have with supervised financial institutions in the country.

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More on this topic

Coffee: Controversial Law Reform Approved

August 2019

The National Assembly of Nicaragua approved the bill that establishes that when the price per quintal of grain exceeds $100, producers must contribute one dollar to a commission that will watch over the incentives of the sector.

The changes to the Law on the Transformation and Development of Coffee Farming were surrounded by controversy, since the previous law mandated that the National Commission for the Transformation and Development of Coffee Farming (Conatradec) should be composed of nine representatives of the private sector, all proposed by the same producers or businessmen.

Debt Refinance for Palm Oil Producers

August 2019

Palm oil producers and traders in Honduras can apply for refinancing or readjustment of loans they have with supervised financial institutions in the country until December 31 of this year.

In order to obtain these benefits, producers and/or traders in the African palm sector must benefit from these mechanisms by 31 December 2019, according to an official source.

Palm Oil: Emergency Is Declared for Low Prices

July 2019

Palm oil producers in Honduras declared a national emergency because of the crisis caused by the sharp drop in international prices.

In a statement issued by the National Federation of Associations of Palm Oil Producers and Extractors of Honduras (FENAPALMAH) and the Industrial Association of Palm Oil Producers of Honduras (AIPAH), it is considered that "...

Financing for the Coffee Sector

April 2018

In Costa Rica, a new bill has been presented to grant resources at a preferential rate to producers, aimed particularly at the smaller ones.

According to the bill, which received a positive ruling in committee and now must go to the Plenary, the fund will be financed by a contribution of 5% from the liquid surplus of the Coffee Institute of Costa Rica (Icafé), resources from the Ministry of Agriculture and Livestock and funds recovered from the Trust Fund for Coffee Producers Affected by Rust and the Coffee Plantation Renewal Plan.

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