This week’s announcement by Uruguay that Ecuador has eased the customs conditions for the possible import of rice from that country caused different reactions in the rice sector and the authorities.

This is by Resolution 008/2023 of the Ecuadorian Foreign Trade Committee (Comex), which ordered a temporary reduction to 0% of the tariff rate and the suspension of the Andean price range system for the import of semi-milled or milled rice for a total quota of 63,246 tons, until December 31, 2023. ., according to a document shared by Uruguayan authorities.

Last June Ministry of Agriculture and Livestock (MAG) authorized the import of grass to guarantee food sovereignty after rice became scarce and expensive due to the impact of winter, which according to the industrial sector affected 40,000 hectares of crops, representing two months of consumption.

After this newspaper consulted him about what was reported by the Uruguayan authorities, MAG convinced that “does not consider it prudent to make announcements about the countries in which they are wanted” of rice so as not to influence the negotiations, since the purchase as such is in charge of a private company. The Ministry clarified that their role as competent authorities is to speed up the delivery of licenses to private companies for imports.

Uruguay reported that Ecuador had improved tariff conditions to facilitate the possible entry of 63,246 tonnes of its rice into the country

However, the state portfolio clarified some aspects of the operation. For example, it was stated that the quota, in accordance with international regulations, does not discriminate between countries, that is, it can be used for imports from any country of origin, in case it is necessary to use a customs relief. .

Likewise, MAG pointed out that they are not responsible for any rice import operations and announced that companies wishing to import rice can initiate procedures for obtaining their permits. He repeated that these are private companies that want to buy rice from private individuals abroad. The Ministry does not consider it prudent to make announcements”in order not to harm or influence – by statement – the processes and prices of the negotiations”, it was confirmed from the State Portfolio, which also pointed out that the Comex decision on the tariff does not indicate that – forced – rice will arrive from a certain country and that the quota reference of 63,000 tons does not mean that this quantity will be imported compulsorily. The priority is to use domestic production,” the Ministry says.

The industrial sector, for its part, supports imports, but they ask that the raw material (rice in the husk) be bought, not milling, because the mills cannot continue working. While the producers oppose the import, because they say that, wherever it comes from, it will affect Ecuadorian farmers.

He President of the Corporation of Rice Industrialists of Ecuador (Corpcom), Juan Pablo Zúñiga, considers that the import of rice should focus on the raw material, i.e. grass in the husk; while that for milled rice should be only once, since the quota announced by Uruguay covers these two tariff subheadings, both for paddy and milled rice.

According to Zúñiga, initially it would be about the first part, the partial import of milled rice, which would be negotiated with Uruguay, but other alternatives are also being analyzed, especially with regard to paddy rice.

The raw materials are exactly what the piladoras require, according to Zúñiga, because in this way they can continue their normal business and create sources of employment, especially rural work and also provide rice by-products that are used in other industries: balanced food; brewery, in shrimp farms.

The price of rice begins to fall, and the price of sugar rises slightly

For his part, he The President of the National Corporation of the Organization of Rice Producers (Corpnoarroz), Javier Ronquillo, He warned that wherever the rice is “brought” to Ecuador, it will harm the production sector. He commented that they have already shown Minister Eduardo Izaguire that they have enough rice planted to supply the market.

Ronquillo assured that they have planted more than 150,000 hectares, which is enough to save in the summer season: September, October and November. “Every year this happened, it was even exported to Colombia and there was a surplus for national reserves,” the leader recalled.

Rice is also grown in Colombia and would change import plans, Brazil and Argentina are among Ecuador’s options

The leader assured that there is always a small harvest in these months, but from August and September the harvest is already more significant, although he admitted that the harvest, which was supposed to start last July, was delayed due to floods. However, the leader predicts that between mid-August and the first weeks of September, “a large number of farmers are harvesting”.

He estimated that about 90,000 hectares were planted between the end of May and the first days of June, in Los Ríos, Guayas and Manabi, and that approximately 500,000 tons of rice will be harvested.

According to Ronquillo, in the months after September, harvesting will continue and by December they will have a total of more than 150,000 tons harvested, and working in stages, they will have an adequate supply.

Regarding the effects of the El Niño phenomenon, the carrier corps, he indicated that planting will continue in the areas of the upper part of Los Ríos, which actually need rain, while there will be problems in the lower area, but the height will compensate.

For its part, MAG assured that it constantly monitors the relationship between national supply and domestic demand on the market and that import needs are determined based on this monitoring, so that it is a dynamic figure that depends on some variables: harvest done; phenological age of developing crops; and planting new hectares.

“In this sense, we confirm that our statements will be framed accordingly. Furthermore, some of this information could be treated against the country’s food sovereignty (we are not saying that this is necessarily the case); but we have an obligation to protect it,” said the State Portfolio.