If this problem is not resolved, consequences will start to be felt. The country could stop planting about 20,000 hectares, said sources close to the sector.

The leader of the Rice Growers Association of Chiriqui (Apach), Carlos Santanach, said there are issues to be further discussed with the government such as financing, the use of irrigation, the rearrangement of imports and the adequacy of land.

The greatest concern is that last year 1.4 million quintals of rice was imported. Consequently, the mills were saturated and domestic rice prices fell to the ground, and although all of the production was sold, the costs had not been factored in.

"We should be selling paddy at between $24 and $25 per quintal, but instead we received between $21 and $22 and those that traded above $25 were few and far between" explained the producer.

Oscar Osorio, chief of the Ministry of Agricultural Development (MIDA) said that imports are not made by the government, but through Baisa and on the basis of performance requirements.

Source: Capital.com.pa

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The rising price of rice in global markets is directly affecting Panama, which annually consumes 8.5 million quintals, of which it must import about 3 million, in order to supplement local production which reaches approximately 5.5 million quintals.

Panama Allows Rice Import

March 2012

The country will import 1.3 million quintals in order to compensate for current low crop yields.

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May 2009

Local production of the grain is increasing and approaching self-sufficiency figures, while prices are stable.

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