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.
In 2017, countries in the region imported $265 million worth of rice, of which 45% was purchased by companies in Costa Rica and Honduras.
Figures from the Information System on the Rice Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
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"]
From 2016 grain importers will go from paying the current 40% import tariff to 36% in 2016 and it will continue to decline until it reaches 0% in 2023.
The rice producing sector in El Salvador is trying to prepare for the start of the process of tariff elimination on imports of the grain, which already next year will be reduced by 4% from the current rate.
Both countries have been granted import quotas for rice and wine as compensation for the increase from 35% to 62% in the tariff for milled rice.
Authorities at the Ministry of Agriculture indicated that Uruguay has been granted a quota 11,080 tons per year, between milled grain, unhusked and parboiled rice. Purchases made outside the established quota will incur the 62% tax.
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.
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.
In Costa Rica the possibility of increasing the tariff on imports of husked rice from 35% to 70% is being discussed.
Taken from Reportearroz.com:
ASIA
Thailand is in first place but India, despite the bad weather, is not being left for dead.
As part of Asian exports, India and Thailand are playing in first position. According to official data, Thailand will be the largest rice exporter after India having been in the lead for two years.
In Costa Rica President Luis Guillermo Solis is urging the national population to consume nationally grown instead of imported rice, "even though it is more expensive."
Extracted from Reportearroz.com:
ASIA
India and Thailand, a tug of war for first place.
As part of Asian exports, India and Thailand are playing in first position. According to official data, Thailand will be the largest rice exporter after India held the lead for two years.
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