The reason why Ecuador will import rice for the first time in years and the battle that Uruguay is giving to sneak into that market

The temporary reduction to 0% of the tariff rate and the suspension of the application of the Andean Price Band System for the importation of rice established by the Ecuadorian governmentas reported on Tuesday by the Ministry of Foreign Affairs (see below) is “very good news”, he stressed to The Observer alfredo lakepresident of the Rice Growers Association (HERE).

He explained that Ecuador has been self-sufficient in the production of rice for domestic consumption, “but this year it had a production bankruptcy and is going to import”.

Ecuador went about 20 years without having the need to buy ricewith a level production and consumption, but there were climatic events that led him to establish this need to import something more than 60 thousand tons.

“We are going to compete with Brazil, the industry has already started a process of presenting offers”Therefore, news is expected in the coming weeks, he added.

Uruguay, to place rice in Ecuador, had to contemplate a high tariff, for which the concern was transferred from the union at the time to the Presidency of the Republic.

This Tuesday, in a press release, the Foreign Ministry reported that “The Foreign Trade Committee of the Republic of Ecuador, through Resolution 008/2023, ordered the temporary reduction to 0% of the tariff rate and the suspension of the application of the Andean System of the Price Band for the importation of semi-milled or bleached rice for consumption for a total quota of 63,246 tons, until December 31, 2023”.

The news was also highlighted by the Ministry of Livestock, Agriculture and Fisheries (MGAP).

rice destinations

This year, rice production in Uruguay, with a new record, reached 1.5 million tons and 50% has already been exported. Half was sent to countries of the European Union. Other relevant destinations have been Central American countries, Venezuela, Mexico, Iraq, Brazil and Peru. In these destinations, 90% of the around 750,000 tons already negotiated were placed, with 10% going to destinations with less demand in volume of rice.

Look the statement issued by the Ministry of Foreign Affairs:

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