There is an urgent need to analyze policies in the rice production chain

In Panama, it is urgently necessary to correct and introduce good practices in rice production, bringing knowledge to domestic producers, warns the representative Inter-American Institute for Cooperation in Agriculture (IICA), Gerardo Escuderor.

Escuedero pointed out that those countries where rice growers have truly united are champions against climate change, making it clear that a real and effective association has yielded results in acquiring inputs and making agreements with the state and public services, he indicated.

Panama is far from taking advantage of easy productivity gains through soft measures, including research, the expert explained.

IICA is making progress in a pilot project to reduce production costs by managing certified seeds. Escudero called on actors in the chain to stop wasting money, nutrients, micro and macro nutrients due to the lack of soil analysis, when inputs represent more than 25% of the cost of production.

Escuedero argues that public policy decisions must be adjusted for the rice chain. Rice is one of the main products that we continue to compensate when these resources must be directed to productivity, research, technical assistance and cost reduction.

While, Minister of Agricultural Development, Augusto Valderrama He spoke about the recovery of more than 16 thousand hectares of rice, but mentioned the impact of the price control measure on the price of this product.

The increase in production costs of $16 is the result of price controls, which means a reduction in the consumer price from $0.60 to $0.40, and the next government will not be able to continue paying out $150 million in subsidies, Valderrama indicated.

“Agrochemicals or crop protection agents are essential tools for agricultural production, if they didn’t exist, 40% of food production would be lost in our country,” he says. Bienvenido Pereira of the National Association of Agricultural Input Distributors referring to the FAO reports.

Pereira claims that the agrochemical industry finances more than $80 million in the rice category alone, 80% to 85% of the product produced in the country.

Rodrigo Cardenal, Calesa group, also highlighted the impact of price controls in the rice industry. Panama has the potential to be self-sufficient, the chain needs to be integrated. Mills are the link between the product and the final consumer, Cardenal emphasized.

This analysis took place during the inauguration the new board of directors of the National Association of Millers of Panama.

President-elect 2023-2024, Raúl Palacio indicated that this industry contributes more than USD 300 million to the gross domestic product, creates more than 45,000 direct jobs and more than 1,800 indirect jobs.

The industry consists of more than 28 mills with silos capable of processing more than 6 million quintals of paddy rice on a rotating basis and stacking capacity of 4,500 quintals per hour, Palacio said.

The state must guarantee access to food, and unions support the cause, Palacio concluded.