The banana business, the way the fruit is marketed and the transparency of the way it leaves the country to different international destinations are worrying the production sector, which this Wednesday, May 3, supported the introduction of a price system stains – at the market price without a contract – in the Draft Law on regulating the production and trade of bananas, which is in the second debate in the National Assembly.

In the last six years, five projects to reform the Banana Law passed through the Assembly. None progressed

The project introduces the modality of buying and selling according to the market price, but also maintains the minimum support price (PSM); a measure supported by manufacturers.

The statement comes nine months after the announcement of the minimum support price for fruit, of $6.50 per box, which came into effect last January and for contracts signed until next December. But so far, the producers admit, this is not the system by which most of the fruit comes out.

Paúl González, president of the El Oro Agricultural Production Association (Asoproagroro), assured that 85% of bananas come through the market price, a figure that is not provided for in the Law.

“The Ministry of Agriculture knows this. So, what are we talking about, the stigmatization of a trade tool when it is practiced by the same ones who misinform and practice it this year, maybe many are afraid to speak, I am not, things must be said as they are,” González stressed.

According to the latest official figure, from January to March last year, exports amounted to 99.86 million boxes, 4.57% more than exports in the same period in 2022.

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Meanwhile, non-recognition in the Price Act stains This hurts small producers, according to Leonidas Estrada, president of the Regional Corporation for Bananas (Agroban), who cited cases where, due to market behavior, the fruit was sold at a price lower than the PSM, at $4.3 or $2 per box , but since the only modality of PSM is in force, producers had to pay tax on that price and not on the actual amount they received.

Estrada also admitted that in order to get the fruit out of the country, they decided to present the contract signed by the PSM to the Ministry of Agriculture and Livestock (MAG), but in practice this does not happen.

“The law as it is now does not allow certain markets to be attacked and conquered with this dynamics of playing with prices, it is a straitjacket that keeps the system in error, because today the contract is signed with PSM, but it is sold at a market price that it can be higher than the PSM or lower, in such a way that it affects when it is charged with the PMS price, but the lower price is perceived,” analyzed Estrada, an activity that was previously treated as a “public secret.”

Lianne Zoeteweij, administrator of the Association of Small Banana Producers El Guabo (Asoguabo), also explained the alleged damage. “Any person who has to sell their boxes voluntarily or not below cost stains he is required to put a minimum support price on the invoice and then he has to pay a single tax on that price, but in reality the manufacturer never received that PSM, in some cases he only receives $2, $3, but he paid tax on $6.50, overpaid is a tax and SRI does not return it to you”, said the presenter.

What happens when the job stains Are they given at a higher price than PSM? For example, according to the figures of the Ecuadorian Banana Marketing and Export Association (Acorbanec), in the first six weeks of the year this price stains it averaged $10.50 per box, reaching peaks as high as $13.

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EL UNIVERSO newspaper consulted Zoeteweij about it. “We also put the right price there, if I sold it for $10, I had to put $10 on the invoice, it’s on both sides,” guaranteed the manager who explained the two types of markets that exist.

“We have markets that only tell the price once and if it’s $6.50, well, we’re at $6.50; or the one who says: I want to talk about the price every week. The types of contracts with external clients that say: I always pay a minimum of $6.50 don’t exist, unfortunately it doesn’t exist, it’s the producer’s wish, but it doesn’t exist,” complained Zoeteweij.

In the meantime, the president of Agroban expects that the report of the second debate on the bill will be voted on at the plenary session of the National Assembly and come into force this year.