Arguing that there are justified reasons to increase the price of pile of rice, in Costa Rica the Alvarado administration authorized a 1.9% increase in the final price to the consumer.
With the increase decreed by the Ministry of Economy, Industry and Commerce (MEIC), the price per kilo will rise from $1.06 to $1.08, for the variety with 20% broken grain, also known as 80/20.
As a pressure measure for the government to decree a 1.9% increase in consumer value, in Costa Rica industrialists have decided to suspend from December 2 the receipt of national grain.
According to businessmen, the price increase is pending since June 2019 and they hope that with this pressure measure, the authorities will publish the decree, in which the value of the kilo is increased from $1.06 to $1.08 for the variety with 20% broken grain, also known as 80/20.
Between January 2015 and December 2016, the average price per kilo of rice imported by Central American countries fell from $0.46 to $0.35.
Figures from the information system on the the Rice Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption="Clic para interactuar con la gráfica"]
68% of rice sales in the market are managed by 3 large companies, and 12% of the profits generated by the premiums are concentrated in a single company.
A study by the Chamber of Commerce concluded that the fixing by decree of the price of rice not only did not result in improvements in productivity, but also revealed the way in which the amount of area sown is distributed as well as the profits of rice trading companies in the local market.
Imports of husked rice grew by almost 200% between the periods 2011-2012 and 2015-2016, and even when paying a tariff of more than 35%, imports easily compete with the subsidized local product.
The competitiveness of imported rice is such that"... it is estimated that for the current period (1 July 2016 to 30 June 2017), purchases will reach 54,000 tons.That is almost three months consumption, in that presentation alone."
The subsidy given to producers of $7.50 per hundredweight of rice which expired on December 31, 2014 has been extended by the government until June 30, 2015.
From a statement issued by the Institute of Agricultural Marketing:
The Ministry of Agricultural Development (MIDA), through Resolution No. DAL-298-ADM-2014, resolved on 15 September 2014 to give support to rice producers and representatives from mills, with the goal of levelling out sales prices and purchases in this basic category of mass consumption by the population. Industry sources indicated that the government has been asked to provide financial backing to match the sale price of $24.50 per hundredweight of grain, against the purchase price of $17 offered by the representatives from the mills, on the basis of the provisions of the resolution of 15 September 2014.
In Honduras the Rice Producers Association is negotiating with the government conditions for establishing a reference price and proposing fixing at $18.65 per hundredweight.
Taken from ReporteArroz.com:
New Tender by Iraq leaves Latin America in suspense .
The Iraqi state-owned grain company issued on Monday an international tender to buy at least 30,000 tons of rice, as stated by the Ministry of Commerce.
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 . "
In Costa Rica a quota for 17,000 tons of rice imported from the US has been rejected, due to the alleged presence of pesticide residues.
Taken from Reportearroz.com:
Asia
Now official: Thailand is the largest exporter of rice
With more than 10 million tons of rice, Thailand was the largest rice exporter in 2014. After India held the lead for two years, Thailand this year will be the most important country in terms of rice exports.
Although a subsidy of $20 million for local production has been approved, calls are being made for the suspension of rice imports, even though the local supply is insufficient to meet demand.
According to industry representatives, the importation of rice has turned into a business which caused extensive damage to the rice industry during the past administration.
Calculations by associations of rice farmers in Panama indicate that the total hectares planted this year is less than 40,000, well below the 76,000 that was grown between 1999 and 2001.
Taken from Reportearroz.com:
ASIA
South Korea: Farmers protest against measures for market liberalization.
Thousands of farmers, both in agriculture and livestock sectors, took to the streets in Seoul to oppose the decisions made by the South Korean state to allow the entry of imports of rice from next year and establish an agreement with China, the FTA.
The Economy Ministry has rejected a request by producers to temporarily raise the tax on imported grain, but has not ruled out doing so from December 2014.
From a statement issued by the Ministry of Economy, Industry and Commerce (MEIC):
The Ministry of Economy, Industry and Commerce (MEIC), through Resolution 051-2014-DM has decided, after a thorough technical analysis in which it was determined that there exists a causal relationship between an increase of the imports of husked rice contemplated and the threat of harm to the domestic industry, not to apply provisional safeguard measures on imports of the product concerned.
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