Friday, 27 November 2020

Rice in Costa Rica: The Poor Subsidizing The Rich

QCOSTARICA – The subsidy of US$190 million paid by consumers “will not primarily go to producers but to large industrial companies which process domestic crops and who are, at the same time, importers.”

0aceab980875-2In his blog on Elfinancierocr.com, Juan Carlos Hidalgo discusses the singular phenomenon that occurs in Costa Rica, where the rice policy initially intended to protect small rice producers, has become an unjust wealth transfer mechanism between sectors of society.

“… According to a study by the Institute for Research in Economics at the University of Costa Rica (ICSI) *, the poor consume more rice and, therefore, devote a larger percentage of their monthly resources to buying the grain. While the poorest section of the population spends 5% of their income buying rice, the richest section designate only 0.3% for that purpose. Moreover, 48% of domestic consumption of rice is done by poor households or those at risk of falling into poverty (Sections I and II).”

- Advertisement -

“… Any rice policy that makes grain prices artificially more expensive disproportionately affects the most vulnerable section of the population. And that is precisely what we have in Costa Rica … ”

“… The economist Ricardo Monge estimates at approximately $190.4 million the annual cost, which represents for Costa Rican consumers the difference between eating rice produced in Costa Rica and imported rice. Again, since low-income families are consuming more of this product, it is they who contribute the most to the subsidy given by consumers to producers and agribusinesses. ”

“… 6 companies are left with 90.1% of the subsidy that corresponds to industrialists, or $117.8 million. One company alone, Compañía Arrocera Industrial S.A., pockets $35.5 million a year.”

“… of the $190.4 million extra paid by Costa Rican rice consumers , 98.84% ends up in the pockets of medium and large industrial producers, while only 1.16% is distributed among the 379 small local farmers. ”

- Advertisement -

Source: elfinancierocr.com

- Advertisement -
Ricohttp://www.theqmedia.com
"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

We understand why older people like them more now

QCOSTARICA - Costa Rica's new twenty rojos* bill was rolled out,...

Patient whose penis was amputated sent a loving message to his girlfriend

QCOSTARICA - A man named García, a resident of Osa, in...

MOST READ

Criminals Use Dating Website to Extort People

QCOSTARICA - Criminals discovered a new way to obtain money on the Internet. Through a website of sexual encounters, they establish contact with potential...

Costa Rica to buy 14 “ultra low temperature” freezers to store COVID-19 vaccines

QCOSTARICA - Costa Rica began the process to acquire equipment that it will need for the future application and storage of the vaccine against...

Chaos on Twitter! Fans confuse Maradona’s death with Madonna’s

QMAGAZINE - After the death of the former Argentine player, Diego Armando Maradona, was announced this Wednesday, November 25, Madonna fans were shocked. The fans...

Traveller’s Tale: Costa Rica has reopened to travelers. Here’s what it’s like to visit

LONELY PLANET -  Twenty-one years ago, Costa Rica was the first country I had ever visited outside the United States. Since that first trip,...

Playas del Coco, Costa Rica

QPHOTOS - Playas del Coco is one of the oldest beach communities in Guanacaste Province, Costa Rica. This region is also one of the...

Covid-19 in Costa Rica: 1,187 new cases for Friday; concern for rise in hospitalizations

QCOSTARICA - Alone at the conference table from Casa Presidencial, the Minister of Health, Daniel Salas, made the rare appearance lately to provide us...

Let's Keep This Going!

To be updated with all the latest news and information about Costa Rica and Latin America.

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.