Due to the high geographic concentration of global production, Central America has increased its imports, but at the same time has become more vulnerable to crop losses, rising international prices and possible disruptions in supply chains.
The importance of the market for this type of food is that rice, wheat, corn, beans and soybeans are basic foods on which the world's population largely depends, since it is estimated that almost half of the calories consumed by people come from these foods.
The Colombian government has reduced tariffs to 0 on imports of lentils, beans and garlic, and suspended the price band for crude and refined oils.
From a statement issued by the President of Colombia:
The National Government has approved a reduction to 0% on tariffs on the import of lentils, beans and garlic, and has temporarily suspended the price band for crude and refined oils, which will ease the cost of the food basket for Colombians during the first half of 2016.
To compensate for the reduction in local production, the government plans to allocate $8.8 million for the purchase of 39,000 hundredweight of beans and 230,000 hundredweight of corn.
In the period from January to August 2014, the government imported maize from the United States and Mexico, and in the case of beans, 60% was purchased from the US, 20.3% from Canada, 11.4% from China, 6.7% from Nicaragua and the rest 1.5% from Argentina.
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.
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:
In order to ensure domestic supply and prevent price hikes, the government has announced it will import beans and corn.
Guillermo López Suárez, minister of agriculture and livestock indicated that importing beans "is necessary" to prevent shortages. The beans will be bought from China, South Africa and Ethiopia and the maize will be imported from Mexico and South America.
Basic grain producers say the import quotas announced by the Government are not necessary.
Mario Sanchez, a local grower, says imports are not necessary and that there are enough beans to supply the domestic market.
Proceso.hn reported statements from James Regan, Minister of Agriculture and Livestock, "We, with full transparency, try to make decisions so that we can achieve a more cost effective supply for the domestic consumers, but to also be able to expand our product to new markets".
The Ministry of Industry and Commerce announced the import of 1.500 tons of beans and 4 million bushels of corn.
The purpose of the acquisition, according to the Ministry, is to neutralize "hoarders" and "speculators."
Minister Francisco Zelaya said that "a government mission outside the country is assessing the conditions of the beans that would be imported into the territory and made available to consumers."