This is the amount of grain, in the hands of 17 producers, that has not been received by the industry, therefore the Costa Rican Minister of Agriculture will assume responsibility.
CONARROZ will buy 5,649 tonnes of unprocessed rice which is currently in the hands of 17 producers, promised the Minister of Agriculture and Livestock, Gloria Abraham Peralta, to a group of producers in the northern part of Costa Rica with whom she met.
The signing of the agreement between the government, representatives of the rice sector and growers puts an end to the conflict caused by administrative price-fixing.
The new agreement guarantees that 100% of the 2011 harvest (53,000 hectares) will be purchased from rice growers by the industrial sector.
One of the key points of the agreement, signed on Thursday 3 November, is that the Costa Rican government promises to implement measures to prevent unfair competition in national rice markets.
In what seems to be a reaction caused by the rice lobby, the government is now requiring imported rice to be fortified in its country of origin.
11,400 quintals of grain loaded into 21 containers have been detained in the port of Limon, because they violate a rule which states that unhusked rice must have vitamins added to it in its country of origin. The requirement has existed since 2002, but has not be applied until last Friday.
The rice lobby held firm and the price of rice will not fall, at least until stocks from the current harvest are exhausted.
Rice manufacturers must submit alternatives to the current fixed pricing system, within a period of one month.
Producers in the South blocked roads in order to pressure the government to keep the price of a sack of 73.6 kilos unchanged, a condition required by manufacturers for the purchase of the current crop.
The unexpected increase in rice harvests from 2010 to 2011 is causing issues for the drying and storage of the grain.
The issue first appeared in the south of the country where a record harvest of 43,000 metric tons was recorded, 22% higher than average.
Óscar Campos, president of the Costa Rican association of rice producers (Conarroz), commented that this is causing queues of trucks in the region’s processing industries.
Costa Rica has harvested more rice than usual, and processing plants are incapable of handling this increase.
“The tipping point will be August, when the south zone and Upala are harvested. Rice grains cannot be stored at manufacturing plants, as once it is harvested it must be immediately dried”, reported Nacion.com.
In 2006/07, Costa Rica supplied 50% of its own domestic demand.
The lack of rain is affecting farmers, causing the loss of 1.500 rice hectares, and threatening an additional 3.500.
The most affected areas are the province of Guanacaste and the Central Pacific. In the case of the latter, 6.000 planted hectares could output an under-performing harvest.
Not only agriculture, but also livestock breeding is threatened by the lack of rains, as it "...has affected grass growth, and has dried water streams.
Lack of rain has caused the loss of 400 hectares in the north of the country.
Foreseeing these problems, the National Rice Corporation (CONARROZ) had already negotiated the purchase of 45.000 tons from the United States, with an additional 10.000 tons to be brought in next February.
Eduardo Rojas, president of CONARROZ, said that "supply is guaranteed, however, we will request the government to declare an agriculture emergency", in a Laprensagrafica.com article.
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