In 2016 scheduled tariff reductions for rice imports begin as part of the DR-CAFTA, posing a threat to local producers.
Nicaraguan rice producers have pointed to the efforts made by the sector to achieve self-sufficiency in supplying the local market, and report that the main competitor unleashed by this tariff reduction is the US which they point out subsidizes rice production.
The US Department of Agriculture projects that global production from the 2014/15 harvest will be 475.5 million tons, 1.1 million tons less than the 2013/14 production.
Excerpted from Reportearroz.com:
International Panorama
The USDA has released the information on expectations for the global rice sector for the upcoming 2014-15 campaign. According to records from the USDA, global production of milled rice in 2014-15 will be 475.5 million tons, representing a figure lower than 2013-14, when the total reached 476.1 million tons. The main reason for the decrease is due to a reduction in yield per hectare.
The Costa Rican government has informed the WTO that from March next year it will cease the pricing system by which domestic rice producers are subsidized.
From 1st March 2014 rice subsidies will be removed, which could end the dispute with the U.S. and other WTO members on account of aid given to rice farmers.
In a statement that the Government of Costa Rica sent to the World Trade Organization (WTO), the country said it will eliminate aid for rice farmers through a decree approved last month.
Central American rice farmers agreed at a meeting in El Salvador to step up production so as to reduce the region's needs for imports of the grain.
Members of Fecarroz, the regional rice farmers' organization, agreed that international prices are likely to remain high. The only solution, they said, was to improve productivity and import less.
Nicaragua was chosen to coordinate research and development of the crop.
The Central American countries have defined strategies to confront the rise in prices and possible scarcity of food. In effect it's an emergency plan that will require an investment of about 560 million dollars. The plan and be concentrated on four products: rice, beans, corn and sorghum.
The Central American plan, aimed at encouraging production of basic grains, includes the creation of a regional network for seed production, joint importation of agriculture inputs, an increase in areas under cultivation, improvements in productivity, and financing for producers.
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