The government and the producers of rice They are in the final phase of a dialogue to find a solution to the overproduction of the cereal and an increase in production costs that have minimized the profitability of the sector.
The Minister of Agriculture, limber crossheld a meeting with the rice farmers last Thursday and listened to the intervention proposal made to the government. As a result of the talks, “we have practically already agreed on the solution,” said the official.
He explained that farmers have suggested that by rice in shell the price is increased a little, not for the consumer, “but that the factories assume that increase to the producers”. At the same time, they propose that the government increase the pledging period for these factories, “so that they do not charge the cost of keeping the high inventories that exist.”
Cruz highlighted as an achievement the great harvest of rice reached last year, and the maintenance of the price thanks to the subsidy of RD$1,700 million that the government arranged for fertilizers.
Cruz was participating on Friday in a meeting between President Luis Abinader and several officials and businessmen to analyze the variables that influence product prices locally and internationally.
On the subject of the industry riceLuis Viyella, executive vice president of Fersan, said that until April 30, farmers will continue to buy fertilizers and fertilizers subsidized by the government.
“Whatever happens, that is the commitment that the industry has with the government. There is still part of that money that will be consumed until April 30. In other words, the first stage of the spring harvest of rice everything is going to be done with the subsidized price of the products, with the price of September”, said the executive.
Viyella explained to Free Journal that the problem with the sector rice is that cereal prices have not changed in recent years.
“The producer of rice had that support in fertilizers to return to September prices. But fertilizers are not the only factor in the cost of rice. In other words, fertilizers can vary between 20 and 30 percent of the production cost of the fertilizer. ricebut then there are 60 or 70 percent of elements of the cost of production, where some of them have gone up a lot”, explained Viyella.
He gave as an example the case of fuel prices, which have a direct impact on the use of tractors and agricultural machinery and, therefore, the services of agricultural machinery.
“The price relationship between rice and the vast majority of the elements of its production costs has deteriorated a lot against the producer. Its profitability has dropped, that is indisputable”Executive Vice President of Fersan
He added that the Minister of Agriculture It has been very receptive to the issue and a solution is being discussed, because the government is aware and wants price stability for the consumer to be maintained, but does not want the producer’s profitability to be destroyed.
“The first problem is solved with the rice, there is a lot of price stability and that can be seen in the market. And it will continue, because production was high last year, higher than previous years. So the expectation of rice is that it maintains its stability”, he indicated.
Does not recommend further subsidies
Luis Viyella understands that from April this year the prices of fertilizers will begin to normalize.
“I don’t think it’s necessary to continue with this subsidy after April because it seems to me, in my opinion, that fertilizer prices are going to normalize after April. I don’t see that need. The subsidy was very timely, very successful, and it is going to have an effect,” she emphasized.
