The control of the departure of Ecuadorian bananas to different international destinations will have changes. This was reported by the Ministry of Agriculture and Livestock (MAG) through a statement, in which it was indicated that it will make adjustments to Form 150, in order to apply the minimum support price (PMS) provided for in the Banana Law and prevent the creation of mechanisms. that they get out of control and that the fruit leaves the country only according to contracts.

Despite the deadlines for signing the contract, the sale of bananas at the spot price was imposed in 2023

This is happening in the middle of a fight, from the end of 2022, between manufacturers and exporters about the modality place-at the market price and without a contract-, which is why the first decided not to sign contracts and ask for the sale of fruit in stains. However, the government portfolio guarantees to implement the banana box PMS, which is set at $6.50 and has been in effect since last January.

In addition, he reminded that on May 4, he gave a deadline of ten days for all members of the banana chain to submit documents that enable them to carry out this activity.

This statement was issued after fruit producers supported the introduction of a price system stains in the bill regulating the production and trade of bananas, which passed the second debate in the currently dissolved National Assembly.

They also pointed to the non-recognition of prices in that law stains hurt small producers. They cited cases where it was sold at the minimum support price, at $4, $3, even $2 per box, but since it was the only type of contract in effect, the producers had to pay tax on that PMS, not the actual received.

Banana exports rose 4.57% in the first quarter, boosted by shipments to the EU and Russia, but there were markets where the share fell

“Presentation of the requested documentation is necessary so that actors in the chain, registered in the Banana Control System, keep their register active,” the Ministry’s press release states.

As for the increased control announced by MAG, Richard Salazar, executive director of the Ecuador Banana Marketing and Export Association (Acorbanec), indicated that he respects the authorities’ decisions, but described it as a “somewhat belated request.” To seek contracts when they should have done so between November and December 2022 and last January.

“From October to December 2022, and also in January 2023, we asked for the signing of contracts with the producers, the vast majority did not want to sign the contracts, and the Ministry also urged the producers to sign, but they did not want to. do it,'” Salazar recalled.

The export sector recognized that 55% of the markets to which Ecuador exports its bananas use the modality stains.

On the other hand, Franklin Torres, president of the National Federation of Banana Growers (Fenabe), indicated that “there is no other economic reason for the prices of banana boxes to be paid as they are currently.”

The high ‘spot’ price of bananas pits exporters and producers against each other and would complicate contracts for 2023.

He also explained that 8 weeks ago they submitted a complaint to MAG that PMS was not paid, and he regrets that the Ministry did not react immediately and had to wait almost two months for action to be taken.

“This situation has complicated the economy of small and medium producers; and we are really in a state of almost inevitable bankruptcy,” warned Torres.