During 2020 in the Salvadoran market, bean imports increased by 122% and rice imports by 51%, a rise that is reported in the context of the health and economic crisis generated by the outbreak of covid-19.
Figures from the Central Reserve Bank specify that between 2019 and 2020, foreign purchases of beans increased from $33 million to $60 million, and those of rice increased from $30 million to $45 million.
In the first half of 2020, Central America spent $206 million on rice imports, 50% more than in the same period in 2019, with Honduras, Panama, El Salvador and Guatemala being the markets that boosted the increase in purchases.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
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.
Because yellow corn is imported from the United States at a price of $11 per quintal in Nicaragua and the cost of producing a quintal of sorghum locally is $12.5, competition for local producers is nearly impossible.
Nicaragua is part of the Dominican Republic-Central America-United States Free Trade Agreement, an agreement that allows yellow corn from the United States to enter the local market free of tariffs.
From January to June 2020, the region's companies bought corn abroad for $525 million, 20% more than reported for the same period in 2019, a variation that is explained by the increase in imports from all Central American markets.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with graph"]
Although the volume of corn, beans, and rice harvested is projected to increase in El Salvador by 2020, producers' expectations are not encouraging, since prices have fallen to levels insufficient to cover costs due to the import of basic grains.
Forecasts by the Ministry of Agriculture and Livestock (MAG) indicate that this year the country's corn harvest will grow by 11%, beans by 30% and rice by 20%.
Between January and March 2020, Central America allocated $51 million to rice imports, 9% less than in the same period in 2019, with Costa Rica and Nicaragua being the markets that registered the most significant reductions.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with graph"]
In Costa Rica, the Chamber of Commerce opposes the agreement signed between the rice sector and the government, which maintains the fixing of the price and the 35% tariff on grain imports.
The decision was made on August 23rd in the framework of the meeting in which the National Production Council (CNP), the National Rice Corporation (CONARROZ) and the Ministries of Economy, Industry and Commerce (MEIC) and Agriculture and Livestock (MAG) participated.
From January to September 2019, companies in the region bought corn abroad for $685 million, 12% more than reported for the same period in 2018, a rise that is explained by the behavior of imports in Nicaragua, El Salvador and Guatemala.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics"]
In order to meet local demand between May and August, the government authorized the import of 2.3 million quintals of paddy rice.
This decision was taken at an expanded meeting of the Committee on the Agrifood Chain of Rice, where its members agreed to recommend to the Executive the import of rice mentioned above, whose date of entry into the country is limited to 15 June 2020, which is recorded in the minutes of the resolution, reported the Ministry of Agricultural Development (MIDA).
From March 2 to 16, local authorities will submit for public consultation the Draft Technical Standard, Characteristics and Technical Requirements of the Premix for the Fortification of Piled Rice.
The project on "Premix for the Fortification of Piled Rice" is the result of one of the two regulatory documents of the General Directorate of Standards and Industrial Technology (DGNTI), reported the Ministry of Commerce and Industry (MICI).
Between January and September 2019, Central America allocated $198 million to rice imports, 22% less than in the same period in 2018, with Panama and El Salvador being the markets that recorded the most significant reductions.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics"]
For the 2018-2019 agricultural cycle, the cultivated area in the country was 925,101 hectares, 14% less than the 1.07 million reported for the 2017-2018 cycle.
Data from the National Agricultural Survey (ENA), prepared by the National Institute of Statistics (INE), show that in the last agricultural cycle about 149,000 hectares were not cultivated with corn.
Arguing that there are justified reasons to increase the price of pile of rice, in Costa Rica the Alvarado administration authorized a 1.9% increase in the final price to the consumer.
With the increase decreed by the Ministry of Economy, Industry and Commerce (MEIC), the price per kilo will rise from $1.06 to $1.08, for the variety with 20% broken grain, also known as 80/20.
FAO estimates that by the end of 2019 the production of grain in the region will be 29.8 million tons, below the average volume reported in the last five years.
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