Monday 21 June 2021

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 -

FACT CHECK:
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.

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

Today’s Vehicle Restriction June 20: only “EVENS” can circulate

Today, Sunday, June 20, only vehicles with "EVEN" ending plates CAN...

Internet speed decreases during peaks in service

QCOSTARICA - Ever wonder why your surfing on the Internet slows...

MOST READ

Diseases, weather and low prices hit the orange sector in Costa Rica

HQ - The appearance of pests and diseases, in particular the 'dragón amarillo' (yellow dragon), the impact of the weather and a sharp drop...

The Best Sports To Play On A Beach

Costa Rica has some of the best beaches in the world. The coastline is blessed with golden sand, beautiful palm trees, and perfect blue...

Informants assisted OIJ in corruption investigations, says the minister

QCOSTARICA - The investigation into alleged bribery of public officials in exchange for contracts for road works, received help from informants within the Consejo...

Vaccination commission endorses J & J vaccine, says no to Sinovac

QCOSTARICA - The Comisión Nacional de Vacunación y Epidemiología (CNVE)  - National Vaccination and Epidemiology Commission - endorsed the use of Johnson and Johnson...

13 Powerful Home Remedies for Acne

Acne is considered to be one of the most common skin ailments on the planet, with a record 60 million people being afflicted by...

Today’s Vehicle Restriction June 16: 5 & 6 CANNOT circulate

Today, Wednesday, June 16, vehicles with plates ending 5 & 6 CANNOT circulate The measure is countrywide and applied between 5:00 am and 9:00 pm,...

The “rebound” effect boosted growth in Costa Rica’s economic activity

QCOSTARICA - Costa Rica's economic activity registered in April 2021 a year-on-year growth of 8.8%, a figure affected by a “base” or “rebound” effect,...

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...

“Caso Cochinilla”: Name arose when comparing parasite with hidden corruption

QCOSTARICA - On Monday, the Organismo de Investigacion Judicial (OIJ) moved to the raid, seize and arrest of their investigation into corruption of public...

WANT TO STAY UP TO DATE WITH THE LATEST!

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.