During 2020, Central American rice imports amounted to $388 million, and purchases from Brazil, Uruguay and Paraguay increased in year-on-year terms by 751%, 330% and 218%, respectively.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with the graphic"].
For the Central American Rice Federation, the bankruptcy of more than 62 thousand rice farmers in Central America and the Dominican Republic is imminent, due to the abolition of import tariffs, a measure that is part of the implementation of the DR-CAFTA Free Trade Agreement.
Representatives of the sector consider that if the commercial liberalization of rice cultivation continues, there will be an increase in unemployment and poverty in their agricultural areas, since more than 265,000 people depend directly on this crop and approximately 990,000 people indirectly, and foresee serious social, economic and political implications due to the effects of the Treaty.
After the Costa Rican government authorized the importation of 50 thousand metric tons of paddy rice, the National Rice Corporation is requesting that this volume be increased by an additional 20 thousand tons.
The National Rice Corporation (CONARROZ) requests the government to increase the Shortage Decree No. 42765-MAG-MEIC-COMEX, through which the import of 50,061 thousand metric tons of paddy rice was authorized, by 20 thousand tons more, to ensure local consumption at a fair price, says a statement issued by the guild on March 15, 2021.
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.
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 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"]
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.
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.
For the 2019-2020 agricultural cycle, 67,558 hectares of grain have been planted in the country, an area that exceeds in 5% what was reported for the previous harvest.
92.2% of the total rice crop is unirrigated (62,280 hectares with 988 producers) and 7.8% is irrigated (5,278 hectares of 53 producers), informed the Ministry of Agricultural Development (MIDA).
In Panama, the subsidy to producers of $7.50 per quintal of rice that expired on June 30, 2019, was extended again by the government, this time until June 30, 2020.
The signing of a resolution to support national rice producers took place on July 18 at a meeting held by President Laurentino Cortizo Cohen with the Minister of Agricultural Development, Augusto Valderrama, and directors of public agricultural sector institutions, the government said.
In the first six months of the year, rice imports in Central America reached $163 million, an increase of 56% over the same period in 2017.
Figures from the information system of the Rice Market in Central America, from the Trade Intelligence Area of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
In Costa Rica, the government has decided to establish an additional tariff of 11.67% on imports of brown rice, for purchases exceeding 6,367 tons.
With this new protectionist measure taken by the government, which will apply from September 21 to December 31 of this year, the current tariff will increase from 35% to 46.67%.
After the government argued that "...the increase in imports of brown rice, is generating an increase in national inventories of rice, resulting in repeated and growing surpluses in the domestic market," it proceeded to implement the protectionist measure called Special Agricultural Safeguard (SGE).
Explained by an increase in purchases made from companies in Brazil, during the first quarter of the year Panama imported $19 million worth of rice, 207% more than in the same period in 2017.
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"]
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