Sector policy framework, production, consumption and marketing
Set in place a transitional mechanism to phase out the price support system for rice. Fixed producer prices will be completely eliminated by 1 March 2014 and replaced with an alternate framework to be devised along with sector representatives. This mechanisms will seek to address the industrys constraints by, among other things, lowering input costs and raising average productivity levels. Until this new framework is implemented, producer prices will be temporarily set at Colones 22 604.41 for 73.6 kilo bag (USD 608 per tonne). In addition, effective from 23 of May 2013 and until 1 March 2014, prices of all qualities of rice along the entire value chain will be subject to price floors and ceilings. In the case of the widely consumed 80/20 rice, previously the only quality subject to price controls, retail prices will pass from a fixed level of Colones 691 (USD 1.37) per kilo to a floor of Colones 657 and a ceiling of 661 (USD 1.30 -1.31) per kilo.
Exchange rate as of 1 July 2013