Monday 21 June 2021

Government Restricts Import of Cheaper Rice To The Country

in 20% of the poorest households, 5% of their living costs is to buy rice, while in 20% of the wealthy homes, it is only 0.3%.
In 20% of the poorest households in Costa Rica, 5% of their living costs is to buy rice, while in 20% of the wealthy homes, it is only 0.3%.

QCOSTARICA – The government of Luis Guillermo Solís says it will restrict cheaper rice from entering the country by increasing the tax on the import of milled grain (shelled), from 35% to 62.06%.

The Ministerio de Economía, Industria y Comercio (MEIC) holds that the purchase of cheaper grain from abroad threatens the national rice production.

- Advertisement -

The measure (higher tax) will be in place for the next four years and during this period the current administration will focus on increasing national productivity, which has higher costs than foreign producers and, therefore, the grain is more expensive in the country.

The expectation, with the reduced imports, national productivity will increase and drive local prices downward, reaching the levels of the imports, said minister, Welmer Ramos.

Producers are confident his will happen, but not so much by the consumer associations.

“It’s part of a process, we need many things, we have to try to lower costs,” said Eliécer Araya, president of the Corporación Arrocera Nacional (National Rice Corporation).

- Advertisement -

Erick Ulate, head of Consumidores Costa Rica (Costa Rican Consumers Association), considers the price protection is not a real incentive to lower costs.

The Ministerio de Economía, announced a decree to reduce the local consumer price by 4%. With the price drop, the retail cost of two kilograms of 80% whole grain will drop from the current ¢1.314 colones to ¢1.262.

In Costa Rica, the price of rice on the store shelf is set by law.

Ramos also said that the Ministry will issue a decree to replace that of the previous administration that liberalized grain prices, starting on May 1.

Why does the price drop if the tariffs increase?

The minister explained that the Ministerio de Economia has the potential to lower the price because the “pilado” which will see the higher taxes is imported from countries other than the United States.

- Advertisement -

Costa Rica can import U.S. grain without tariffs under the Free Trade Agreement (FTA), but only by industrials that buy from local producers, based on their quota, and use it in the “price mix” to set the value to local consumers.

The country consumes some 360.000 tons of rice, of which 60.000 is imported.

The Asociación de Consumidores Libres, Consumidores de Costa Rica and importer Juan Carlos Sandoval, general manager of  Maquila Lama, told La Nacion, they will be challenging the government decision.


- Advertisement -

We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Today’s Vehicle Restriction June 21: plates ending in 1 & 2 CANNOT circulate

Today, Monday, June 21, we are back to the two plates...

Will that be Cash or Sinpe Móvil?

QCOSTARICA - Sinpe Móvil is easy to use. From your phone,...


Cynthia Ann Telles named new U.S. Ambassador to Costa Rica

QCOSTARICA - Today, U.S. President Joe Biden announced his nomination of Dr. Cynthia Ann Telles as United States ambassador to Costa Rica. According to the...

Since 2018 MECO has received contracts from the State for more than ¢139 billion

QCOSTARICA - Almost ¢140 billion colones (US$227 million dollars) is the amount the MECO construction company was able to snare for public works contracts...

Nathalie Álvarez Mesén’s feature debut, Clara Sola, ready for the Cannes Directors’ Fortnight

Q ENTERTAINMENT (CINEUROPA) Nathalie Álvarez Mesén’s debut feature, Clara Sola, is ready to take part in this year’s Directors’ Fortnight at the Cannes Film...

Immigration system failure affected passengers at the San Jose airport Monday

QCOSTARICA -  In yet another system-wide failure in the immigration check-out, passengers looking to leave Costa Rica Monday morning by way of the Juan...

OIJ investigation into road works corruption leads to inquiries in Panama

QCOSTARICA - The prestige of the company of some of the richest men in Costa Rica hangs by a thread. For many, the MECO...

Despite investigation, construction of road works by H. Solís will continue

QCOSTARICA - Five major road works under the responsibility of the H. Solís company will continue in development despite investigations for alleged corruption involving...

Fifth tropical wave precipitation will be heavier in the north of the country

QCOSTARICA - For this Wednesday, the arrival of the fifth tropical wave of the season is expected, thus reinforcing the rainy activity mainly to...

Today’s Vehicle Restriction June 15: 3 & 4 CANNOT circulate

Today, Tuesday, June 15, vehicles with plates ending 3 & 4 CANNOT circulate The measure is countrywide and applied between 5:00 am and 9:00 pm,...

Bribed with cars, sexual favors and money in exchange for road works contracts

QCOSTARICA - The OIJ uncovered a big pothole on Monday when it was announced that public officials had allied with construction companies that, apparently,...


Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.