19.8.1. No further production
The rice farmers who are harvesting and the grass (The Universe September 14, 2008) are very concerned because with the pricing of Central Government, will not achieve a profit. Farmers Charapoto
(Canton Sucre), for example, in crisis by the fall in the price stood at $ 28 a quintal and unable to be exported, by decision of the Government in order to "force" as curb or falling prices. The most serious thing for farmers is that the cost of inputs (seeds, fertilizers, herbicides, fungicides) for rice production has increased, the costs just to reach inconsulto price fixed by the Government.
Therefore, farmers blame the government for applying to be bad policy to set the price for rice without considering what it costs to produce it. And they said, that "the rice price will come down only when improved farming technologies or, if lower prices of inputs, otherwise the work cease to be profitable and one sow. "
On the other hand, urea subsidized by the government "to help small producers," which is sold at 16 dollars to each of the producers who request it, but it is up to 2 bags per hectare, which, shortly support, where a hectare needs 6 sacks. And it is up to a maximum of 8 bags per farmer.
From the above, if not lifted pricing and suppression applied to industry, from the harvests of 2009 we will have a marked reduction of the production supply and in turn, the consequent price increase.
is that Ecuador can not be abstracted to the Law of Supply and Demand, more that government has a "revolutionary.
19.8.2. Subsidized exports to Venezuela
in 2008 (El Universo October 20, 2008) the Government decided to maintain the ban on rice exports to countries like Colombia and Peru. However, USD $ 600 is the price of a metric ton of rice for the Venezuela of Hugo Chávez. With the measure, has managed to keep the price of $ 28 sack of rice, said Agriculture Minister Ramón Espinel.
The official, however, did not indicate what amount of rice that comes out. The figures are not available on the Corporation for the Promotion of Exports and Imports (Corpei) or the Central Bank.
Months later, Espinel announced (El Universo, July 31, 2009) that Ecuador exports to Venezuela 30,000 tonnes of paddy and 20,000 tonnes of maize for the month of August. But gave no details on the amount that Ecuador wants to receive for export to Venezuela, or the price per ton was negotiated, however, speculated that the rice is sold at USD 600 per metric ton, FOB.
As transport of the grass in Venezuela is estimated at 40% of the FOB value, deducting local operating costs, it is considered that the subsidy reaches 50%
also said Espinel Ecuador will open the rice and corn exports by 100,000 tons for each product, which will be negotiated directly by local producers with potential buyers. Quito and Caracas
drive alliances "strategic" in various sectors to develop projects and encourage investment in all areas, as part of their matches to advance ideological "socialism" in the region.
But the guilds of production are kept apart. Not involved in the negotiations, but, give them negotiating.
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