AreaCosta Rica

Commodity GroupRice

CommodityAll

Date06/07/2022

Policy CategoryProduction

Policy InstrumentSector policy framework, support prices, consumer prices, government procurement, import tariffs

DescriptionOutlined a series of proposed sector reforms, termed "Ruta del Arroz", with the aim of lowering consumer prices on rice, while supporting farmers with small and medium-sized holdings. With this aim, public consultation was opened on decrees abolishing floors/ceilings on wholesale and retail prices of rice and reference producer prices of paddy, and lowering import charges on rice (including customs duties and other taxes) from a total of 36 percent to 4.5 to 5 percent. This would be in addition to steps taken in June 2022 to facilitate fortification of imported rice in the country. To support local rice producers, in addition to plans to avail technical assistance, it also highlighted that the National Production Council could absorb supplies not received by processors and that it planned to extend a one-off direct outlay to 90 percent of rice farmers, who cultivated 100 hectares or less, as compensation for the costs of transitioning towards larger-scale cultivation and productivity improvements. Legislative steps geared at receiving authorization to extend this compensation had already been taken.