Encouraged by distorted prices due to governmental actions, the amount of planted areas sown previously reached 71,000 hectares, now the government, producers and manufacturers have agreed to reduced it to 53,000.
The decision was adopted by a consensus within the National Rice Corporation (CONARROZ), a step that shows clearly that the previously announced target of increasing production has been abandoned.
The National Rice Corporation has plans to purchase a plant for drying and storage of 'Rita' rice.
The purchase of the plant, owned by the National Production Council (CNP in Spanish) is subject to approval by the Controller General of the Republic.
The plant, which has not been in operation for 20 years, was valued at $1.3 million and will need about $200 thousand to make it useable, said Carlos Chavez, president of Conarroz.
The Costa Rican Ministry of Agriculture, along with producers, is looking for a quick solution to excessive rice production.
The solution to the problem is closely linked to actions that depend on the approval of tenders or finding more money, remarked Tannia Lopez, the Vice Minster of Agriculture.
La Prensa Libre published statements by the Vice-Minster, "Industrial companies are greatly concerned, because imports of milled rice keep rising, making them less able to receive farm grain. We are going to inform this to all regions so that producers can at least decide whether to plant or not, taking into account what is happening in the international market".
The rice growing season of 2008-2009, registered a decrease of 22% in the area used for rice cultivation in Costa Rica, from the same period in 2007-2008.
The main causes for the reduction of the harvested area are the contraction of credit during 2008, a product of the international financial crisis, and the international decline in the price for rice during the same year.
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