The subsidy of $190 million paid by consumers "will not primarily go to producers but to large industrial companies which process domestic crops and who are, at the same time, importers."
In his blog on Elfinancierocr.com, Juan Carlos Hidalgo discusses the singular phenomenon that occurs in Costa Rica, where the rice policy initially intended to protect small rice producers, has become an unjust wealth transfer mechanism between sectors of society.
Rice producers fear not being able to sell their rice harvest because of the entry of rice from countries such as Argentina, Brazil and Uruguay at much lower prices than local ones.
"At great risk are 60,000 hectares of rice, for which there is no known market for this production because Costa Rica is being invaded by milled rice imports from southern countries (Argentina and Uruguay)," said the new President of the National Assembly of Rice Producers, Domingo González. "
Denouncements have been made over distortions in the rice market where a supermarket chain and four other major players are on the receiving end of benefits from a perverse price fixing system.
An article in Nacion.com reports that former President of National Assembly of Rice Producers notes that these market actors, whose interests would be seriously affected by the liberalization of grain prices, "...
A request by the National Rice Corporation for a protectionist trade measure is being analyzed by the government.
The Costa Rican government is discussing the possible application of a safeguard measure on imports of rice from Argentina and Uruguay. The measure was requested by the National Rice Corporation (Conarroz).
"The review process has been started and now we will wait and see.
Consensus between producers, industrialists and government officials is paving the way towards ending the legally fixed price of rice in Costa Rica.
Rice liberalization will take place over the coming months, by means of an executive decree. The first step will be to release the value that the miller pays producers and after a few months (in which the stock bought at higher prices will be consumed), consumer prices will be released.
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