Little Competition in Salvadoran Rice Market

A study presented by the Superintendency of Competition (SC) reveals that 80% of purchases of local production and imports of raw rice are controlled by only two operators.

Thursday, September 13, 2012

Jaime Baires, an economist from the SC, said, "The problem of having a concentrated industry is that there is little competition. The fewer competitive pressure leads to more market power for the larger participants, and that translates into higher prices (for consumers). "

"In this way, the SC has recommended to the Ministry of Agriculture and the Ministry of Economy to replace the Agreement for the Commercialization of paddy rice, which dates from 2000, with a new legislation.

According to research, it imposes many obstacles to getting companies interested in competing in the rice import and distribution chain", noted an article in Laprensagrafica.com



More on this topic

Study of Competition in Salvadoran Markets and Supermarkets

September 2013

The Superintendency of Competition has initiated a study on the conditions of competition in retail markets, especially in supermarkets and local markets.

"... the aim is to make a diagnosis of this economic activity and, if necessary, issue policy recommendations to help strengthen competition," noted an article in Elsalvador.com.

Request for Rice Commercialization Agreement Not to be Modified

October 2012

Salvadoran rice producers have asked the Presidency not to change the Convention after the Superintendency of Competition (SC) requested changes.

The study presented by the Superintendency of Competition (SC) revealed that 80% of purchases of local production and imports of unprocessed rice are concentrated in only two operators.

Sugar Company Fined $1.1 million in El Salvador

May 2012

The penalty was applied to the companies for having implemented actions that caused obstacles to the entry of competitors or expansion of existing ones.

The statement of the Superintendency of Competition:

SC sanctions DIZUCAR for abusing its dominant position

The Superintendence of Competition (SC) has fined the company Distribuidora de Azúcar y Derivados, S.A.

Regulation Causes Rise in Drug Prices

November 2011

The Superintendency of Competition of El Salvador (SC) has confirmed the existence of barriers of entry and regulatory issues that are raising drug prices.

During Competitiveness Week 2011, the SC held a public event at which the Board's position regarding competition in the drug sector was announced.

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