Rice Subsidies in Panama

The government is considering indirect forms of subsidy such as rewards for farmers with increased production or improved productivity, in order to avoid the impact on the population of an increase in grain prices.

Tuesday, September 11, 2012

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.

An article in Capital.com reports that "the Minister of Agriculture, Oscar Osorio, is conducting a series of consultations with rice farmers in the provinces of Chiriqui, Veraguas, Cocle and Panama to determine how to increase domestic production, in order to become less dependent on imports. Osorio said that in this process they aim to promote technology transfer, as they have consulted the country's most successful rice growers to find out what they are doing to get good returns and what they can contribute to make small producers improve their production, to get their yields to rise above 100 quintals per hectare.

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More on this topic

Subsidy Policy in El Salvador

July 2013

In 1999, government spending on subsidies was $13 million, a figure which has multiplied 30 times, reaching $471 million in 2012.

In an event organized by the Salvadoran Chamber of Consulting Firms (Camsec) and the Union of MSMEs, union president, Jorge Daboub, revealed that while in 1999 the country spent $13 million on payments of subsidies, specifically for liquefied gas oil, by 2012 they had increased to $458 million, which represents an increase of 3523.1%.

Costa Rica: Rice Subsidy Only benefits Large Producers

May 2012

In Costa Rica, the current mechanism mainly benefits 30 large producers, who received $80 million in subsidies in 2011.

Despite warnings from the WTO, Costa Rica continues to subsidize rice production, a benefit which actually goes to about 30 large companies, rather than groups of small producers, and is "an unnecessary risk" according to the former Foreign Trade Minister Alberto Trejos, who added that "it is like going to the Country Club in Escazú to hand out Family Allowance resources."

Costa Rica: $104 million in Rice Subsidies in 2011

May 2012

In the last 5 years the pricing system in force has transferred more than $390 million from the pockets of consumers to rice producers.

A statement of the Ministry of Commerce reads:

Rice sector subsidies in excess of $100 million for the second year

San Jose, May 8th, 2012.

Pressure Increases due to Costa Rica´s Rice Subsidy

November 2010

WTO members launched a new campaign against the country due to its subsidies to rice production.

The claims were presented at the meeting of the Committee on Agriculture of the World Trade Organization (WTO) and point out that Costa Rica failed to limit their subsidies.

Costa Rica agreed not to exceed $ 15.5 million a year in subsidies and in the year 2010 it has gone over $ 100 million.

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