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Price of bananas in Ecuador will be set according to the season
Posted On 28 Oct 2020
A new internal price scheme set the Government for bananas. The Ministry of Agriculture and Livestock established a new mechanism of four minimum support prices for the banana box for 2021.
Price of bananas in Ecuador will be set according to the season
This unprecedented scheme for the main export fruit will operate according to the weeks, with differentiated prices.
Thus, from week 1 to week 16, the price of the box will be $ 6.60. From week 17 to 32, $ 6.20, while from week 33 to 42, $ 4.50. From week 43 to week 52, the value will be $ 6.40.
This scheme also allows the signing of contracts with the annual weighted average price equivalent to the minimum support price of $ 6.25.
The Ministry of Agriculture points out that the Ecuadorian banana sector has faced great challenges in the last two years, such as the arrival of the Fusarium race 4 fungus in Latin America, which represents a latent threat.
Added to this is the unexpected COVID-19, which changed the dynamics of demand in consuming countries, which caused logistical difficulties for the transfer of fruit, and affected the flow of payments throughout the entire chain, according to that portfolio. of State.
According to the Ministry, this model will allow producers to obtain more income when their production is higher and better cope with the normal drop in demand that occurs from June to October of each year, and prepare for the increased sales and production that takes place. from November to May.
This scheme includes an incentive for small and medium organized producers that consists of a support fund to promote the Productivity Plan for the next 3 years.
This plan incorporates the subsidy of interest rates for working capital and discounts for the purchase of fertilizers and phytosanitary products, as well as for investment in the renovation of plantations and the acquisition of irrigation systems. This compensation is aimed at producers of up to 50 hectares, and also applies to those who are formally associated.
The premise, according to the Government, is to help maintain farms in good condition and achieve optimal production, having a permanent focus on productivity improvements. (I)
