In Panama, the company Agrosilos S.A., invests in the expansion of its facilities located in the district of Chepo, the works include the construction of three new silos that will be used to store rice.
With the execution of this investment, this plant will now have nine silos, with capacity for 693 thousand quintals of rice storage, according to a press release from the Ministry of Agricultural Development (MIDA).
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.
Because in 2023 the tariff on rice imports will be zero because of the CAFTA-DR Treaty, rice producers in El Salvador are asking for a review of the trade agreement.
According to CAFTA-DR, which was signed in 2004 and came into force in 2006, the tariff on imports (DAI) will be eliminated gradually.
From January to September 2020 Central America allocated $298 million to rice imports, and purchases from Brazil increased 808% compared to what was reported in the same period of 2019.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with the graph"]
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.
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"]
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.
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"]
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.
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