The directors of the Dominican National Federation of Rice Producers (Fenarroz) criticized the limited and scarce access to financing to the sector and to agriculture in general.
They emphasized that the Agricultural Bank has neglected loans and insurance to the sector, the need for more banks to participate in pledge programs and to update banking regulations that categorize small and medium debtors.
The directors of Fenarroz spoke about this, headed by Marcelo Reyes, Iván Tió Pimentel, former president, Marcos Rodríguez, president of the Northwest Line Rice Producers Association and Santo Paulino, President of the National Council of Agrarian Reform Parcelers.
Reyes indicated that after agricultural insurance was becoming a culture, in recent years they do not respond the same to the producer and nor do they update the production costs to the producer in order to better assist in eventualities.
He also criticized that their credits are not democratized, but rather that they only reach one group.
Pimentel said that Bagrícola does not allocate large loans to large groups, nor organized groups or producer associations, nor cooperatives, among others.
Producer Marcos Rodríguez, who is president of the Northwest Line Rice Producers Association, which groups more than 30, explained that this entity even won a prize awarded by the bank in 2021, due to its punctual payments, but now from the Agricultural Bank you do not obtain a loan.
Greater participation
Pimentel explained that the pledge program is excellent and has allowed a stable price to be maintained over 20 years. However, he stated that at this time more funds need to be allocated, since the Reserve Bank has RD$10,000 million, but the production cost of the harvest is RD$15,000 million.
He also urged that more banks be allowed to participate in the pledge program, allowing the producer to work with his preferred bank and the one that manages his accounts, but maintaining the fixed rate of 6%.
Banking regulations
Rice producers raised the need to adjust to current costs and the increase in inflation, the banking regulations that categorize agricultural producers as small, medium and large, since it does not respond to the reality of the sector.
They explained that due to the amount of resources handled by producers who are considered small debtors with banking regulations, they now become medium-sized and this increases the requirements they must meet when wanting to access banking.
They explained that the adjustment they need is for this regulation to take into account that production costs have increased and that the small producer remains small even if he manages more resources.
