TICO BULL – This is a complete joke, pulling the chain of the hard working people of this country, trying to make ends meet in the face of the rising cost of living.
On Monday (March 2, 2015), the government announced a reduction of ¢52 colones per bag of two kilos of 80% whole gran rice (80/20), BUT, the price drop won’t take effect until June 8. YES, you read it right, June – three months away!
The ¢52 colones may not seem much to many, but consider a family on a budget, consuming several bags of rice a week, that over a month can equal to about a half day’s salary.
The price of rice in Costa Rica is regulated. The new price, IN JUNE, will be ¢1.262 (from ¢1.314) for a 2 kg. bag of 80/20 and ¢631 (from ¢657) for a 1 kg. bag.
The monthly demand in Costa Rica for milled rice is 19.271 tons, according to the Corporación Arrocera Nacional (Conarroz) – national Rice Corporation.
I mean, June? Is this for serious? I am afraid so.
Source: Bolsa de arroz bajará ¢52 el 8 de junio próximo
The Costa Rica Government has been subsidizing rice farmers for years, when cheaper imported U.S. rice was available. This has been an unnecessary drain on tax revenues in Costa Rica, when importing the cheaper U.S. rice would have been the obvious solution. The rice farmers could have changed to a more competitive crop such as pineapple, instead of continuing to grow rice, which was not produced at competitive prices in world markets.
Actually, 52 colones, about 10 cents, isn’t that much, even for poor people. At 3 bags a week for a family, it only comes to $1.25 a month, which isn’t a half day’s salary for anyone, even the car watching guys on a slow day.
The real joke is that the government wastes its time on silly little things like this. Unlike costarick, I don’t always oppose protectionist policies, including even subsidies, for some industries. Turning everything over to the so-called free global market isn’t always the best strategy. However, I do oppose government mini-micromanaging. Surely lowering the price of a 2-kg. bag of rice by a dime isn’t an effective anti-poverty or agricultural policy.