Panama: National Rice vs. Imported Rice


News from Panama / Tuesday, April 16th, 2013

As I travel across Chiriqui province I often catch the sun on the rice fields at just the right moment when they light up with the most verdant bright green color.  With the advent of imports, Panama may see fewer hectares of land being planted and replacement crops will emerge.

The disadvantage in terms of productivity and prices of Panamanian rice farmers against major world producers, has trapped producers, many of whom are abandoning the crop.

If this problem is not resolved, consequences will start to be felt. The country could stop planting about 20,000 hectares, said sources close to the sector.

The leader of the Rice Growers Association of Chiriqui (Apach), Carlos Santanach, said there are issues to be further discussed with the government such as financing, the use of irrigation, the rearrangement of imports and the adequacy of land.

The greatest concern is that last year 1.4 million quintals of rice was imported. Consequently, the mills were saturated and domestic rice prices fell to the ground, and although all of the production was sold, the costs had not been factored in.

“We should be selling paddy at between $24 and $25 per quintal, but instead we received between $21 and $22 and those that traded above $25 were few and far between” explained the producer.

Oscar Osorio, chief of the Ministry of Agricultural Development (MIDA) said that imports are not made by the government, but through Baisa and on the basis of performance requirements.