Once the end of the 2013-2014 crop season has finished 1.2 million pounds of black beans will have been sold to Venezuela.
"A larger effort has been devoted to the production of black beans for export, due to the security afforded by the market agreement between the governments of Venezuela and Nicaragua," said the president of the National Union of Farmers and Ranchers (UNAG), Alvaro Fiallos, alluding to the Bolivarian Alliance for the Peoples of Our America (ALBA).
In order to meet internal demand the country needs to purchase 200 thousand tons of black beans, therefore it has temporarily removed import taxes on the grain.
According to the Minister of Agriculture of Brazil, Antonio Andrade, the Government has decided to temporarily remove tariffs applied on the import of the grain, with the goal of guaranteeing supply without pushing prices higher.
Salvadoran farmers are projecting a harvest of between 17 and 17.5 million quintals of corn.
The president of the Agricultural Suppliers Association (APA), Oscar Albanez, said they have the required factors for a very good harvest, "Winter in May was better than average. That was very good because it made the soil moist. On the other side, raw materials for producers have been stored up, both fertilizer and agrochemicals as well as seeds", he said according to Elsalvador.com.
A partnership between producers and the government is being analyzed so that the Honduran government can maintain a strategic reserve with set prices.
Through the partnership, basic grain producers are looking to store corn and beans on the premises of the National Institute of Agricultural Marketing (IHMA) in exchange for negotiated prices with the government of Honduras.
A decree authorized the duty-free import of basic grains, maize and beans, to ensure supply for the population.
By means of Decree 907, the MAG has been empowered to buy and sell seed and grain, bean and maize and materials for their production, in order to guarantee the price of the product and transfer it at a reasonable cost to the public.
A press release from the Ministry of Agriculture and Livestock in El Salvador states:
The Ministry of Agriculture will provide $11 million to compensate for losses caused by the excessive rains.
Hugo Flores, deputy minister, explained that the money will go towards replanting, renovating at-risk areas, and supporting the aquaculture sector, among other schemes.
The measure seeks to prevent a shortage of basic grains in 2012, and will be complemented by the duty-free import of 50,000 tons of white maize and 25,000 of red beans.
Domestic producers are seeking to reverse the shortage of grain present in the country and the region.
In the coming weeks, 70,000 hectares of beans will be planted, so that there is sufficient inventory starting December.
Laprensagrafica.com reports, "Nicaragua and other countries in the region face a severe shortage of red beans, as rains in the last month damaged crops and grain exporters prioritized their foreign sales.”
Facing a 30% loss in the first harvest, the Secretary of Agriculture is evaluating whether to import the grain.
Jacobo Regalado, Secretary of Agriculture, pointed that the organization is waiting for the final data to determine if they buy from those countries.
“In the capital city markets there are rumors of a shortage of beans, and the cost of five pounds is between 63 and 65 lempira, even more depending on the quality.
To meet the country's demand between 100k and 200k hundredweight of beans will need to be imported.
The Farming Secretary, Jacobo Regalado, indicated that this week the government will announce whether or not bean imports are authorized.
"Imports may be an option but they will need to be carried out in a carefully planned way because we do not wish to harm domestic producers," added the minister to Elherldo.hn.