Rice and corn have a new price range

Ecuadornews:

The values will govern from the winter harvest of both products. The farmers do not accept the established costs and ask for clarification. The Ministry of Agriculture and Livestock (MAG) announced that paddy rice and  corn will be marketed with new support prices in the 2018 agricultural season. In the first case, it removes 200 pounds of grain, with 20% humidity and 5% of impurities, will have a minimum price of $ 32.30 and a maximum of $ 35.50, the latter was the only fixed value that previously ruled in the sector.

The quintal of corn of 45.36 kilograms, with 13% humidity and 1% impurities, will have a ceiling price of $ 17.20 and a floor price of $ 13.50. Previously it was $ 14.90. The MAG reported that the minimum support price of the 50-pound banana box remains at $ 7.30. These values were established on Wednesday by the Ministry of Agriculture as a product of the advisory councils of each product.

The MAG indicated that the objective of this new public policy mechanism is to protect and guarantee the profitability of the small farmer, as well as to offer optimal conditions to the rest of the productive chains. The entity added that the application of this price floor mechanism (minimum) and ceiling price (maximum) will be executed once the ministerial agreement is signed.

Yesterday, during his visit to the canton of Nueva Loja (Sucumbíos), the Minister of Agriculture, Rubén Flores, said that in both cases – floor and ceiling price – the profitability of the farmer is guaranteed. “Beware of the speculative behavior of the industry, because you will not weigh your hand if you speculate. Understand that what we are doing is for the benefit of the rural sector. ” Flores commented that the minimum support price is not the main issue, but “how we manage to improve productivity and how we strengthen associativity to have greater volumes and impact on the market”.

Farmers disagreement 

The announcement of the MAG caused a slight tremor among the country’s rice and corn producers. The latter have already started harvesting the winter season. Henry Peña, president of the National Corporation of Maiceros (CorpMaiz), said that “we do not agree with that price” to the grain, which “has not been in consensus with the productive sector.” “It’s a personal decision of him that is not attached to our production costs,” Peña said. Therefore, yesterday, the corn managers of Los Ríos, Guayas and Manabí met at Ventanas to make a firm decision regarding the new price of the cereal. He clarified that the ceiling price is to curb speculation.

“For example, a person who has money today buys cheap corn, keeps it so that in November, December or January it can be sold for $ 18 or $ 20. The idea is to avoid that.” While Adrián Burbano, a rice producer from the Pedro J. Montero parish (Yaguachi), said that the MAG should set a single price of the grain so that the value of the batteries will be respected.

He added that it should be clarified “when the floor price applies and when the ceiling price, if it is for periods of production or quality of the grain”. AN EP paid debt to rice farmers The National Storage Unit (UNA EP) paid $ 1’382.156,64 for the debt it had with the rice farmers of Daule, Babahoyo, Ventanas and Quevedo.

The UNA Public Company indicated that it is prepared to receive the rice harvest of the winter season, said Paulo Proaño, general manager of the entity, after noting that these resources were obtained under self-management. The public company explained that between April 3 and 4 he paid $ 407,386.01 to the rice farmers; on the 5th and 6th of this month $ 386,948.95; 9 were $ 506,027.07 and on Wednesday 11 he paid $ 81,794.61. (I)

Source: https://www.eltelegrafo.com.ec/noticias/economia/4/ecuador-mag-arroz-maiz-nuevosprecios