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 "... Another decree which contains a process that allows the price of rice to reach similar (international) levels . "
A bill has been presented that would force to buy all domestic production as a precondition to any imports.
The plan is to create the National Regulatory Commission on Production and Marketing of White Maize in order to strengthen bean and white maize producers in Costa Rica.
The National Rice Corporation and the Government have agreed to move towards an alternative to the price fixing scheme.
"It was also decided to establish a process of transition to manage the market and increase productivity in the sector, which should be ready this week," reported Elfinancierocr.com.
With the intention of benefiting producers and consumers, and achieving better crop yields, in Costa Rica the price of rice is fixed by law.
According to an article in Nacion.com "a study by the Institute for Research in Economics (ICSI), at the University of Costa Rica, which was requested by the Ministry of Economy, Industry and Commerce (MEIC)." states that "the law fixing the price of rice will not benefit either the consumer or the producer, as intended by the measure, nor will it promote better returns."
The Ministry of Economy, Trade and Industry has presented the basket of major products that are exported in order to monitor prices and marketing channels.
An article in Elfinancierocr.com reports that "Included in the basket will be six pesticide active ingredients under 95 brandnames, informed Guisela Chaves, director of economic studies at the Ministry of Economy, Industry and Commerce (MEIC). A sample has been chosen in order to monitor prices in the entire chain, ie from entering the country until it reaches the producer, so they can see where they can develop strategies for producers to get better prices. "
A court ruling has annulled a government decree which set a minimum price for the grain, forcing the government to pay for the material damage that this rule has caused.
Once this judgement has been confirmed, the $28 million, estimated by experts acting in the litigation as the amount the State must pay to producers, will be added to the $104 million that these producers received during 2011 as a grant.
The increase in the price of local milled rice in 2011, has boosted imports.
According to the Ministry of Agriculture and Livestock (MAG) as of September 2011 a total of 17,000 metric tons had been imported. "In the next three months of this year, imports could have tripled the 62,000 metric tons of 2010", reported Elfinancierocr.com
In the country it is the Ministry of Economy that establishes the price of rice, by decree, a measure that has been questioned by the World Trade Organization, who argues that more subsidies are being granted than allowed.
Four government agencies have joined together to survey the range of fresh products in different regions around the country.
The first area to be studied was the so-called Brunca region, in the south, in which are planted over 500 hectares of blackberry, some 480 hectares of native rambutan, 400 improved rambutan and 550 hectares of plantains and bananas.
Two companies filed a lawsuit against the model used to set the minimum exit price for banana.
Balatana and TMF Agro submitted a complaint before the Contentious Administrative Court (Tribunal Penal Contencioso Administrativo), arguing deficiencies in how the price is calculated, and critizing the entities using it, such as Corbana (National Banana Corporation), and the Economy Ministry.
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