Trade and markets
 

Detail

Area
Panama
Commodity Group
Rice
Commodity
All
Date
22/02/2018
Policy Category
Production
Policy Instrument
Sector policy framework, production support, consumption and marketing
Description
Approved a law declaring rice a national food security crop, calling on the executive branch of Government to put in place policies that guarantee rice production, availability and consumer access to quality produce. The law calls for a strategy to boost local rice production, while tasking the Ministry of Agricultural Development with taking measures to facilitate research, crop insurance, and credit and technical assistance to local producers, as needed. In order to secure local rice production, it envisages a subsidy of PAB 165 (USD 165) per tonne of wet unclean paddy produced in Panama, to be reviewed every three years, further to tax exemptions on inputs, as well as 40 percent discounts on costs of fuel and lubricants incurred by producers during the growing period. While the Instituto de Mercadeo Agropecuario is charged with purchasing all local produce not absorbed by private sector entities, among other measures, the law also foresees a PAB 11.02 (USD 11.02) per tonne levy on rice imported through shortage quotas, in order to fund capacity development for local rice groups and contributions to the Latin American Reserve Fund. The law became effective on 23 February 2018.
Notes
Exchange rate as of 15 April 2018.