Panama: Rising Rice and Fuel Prices Threaten Food Security

According to Bethancourt, most rice producers are rain-fed and cannot reduce production costs, even if they wanted to, because they do not have the conditions of irrigated producers, where one can manage planting dates, better solar radiation, and better planning. He emphasized that it must be taken into account that by having producers working, they generate employment and food security, since it is unknown if, as a consequence of the current war, there will be food elsewhere to bring here next year. "We will not be able to avoid the increase for the consumer; I don't think so, because the president has already said that there will be no subsidy of any kind," declared the producer. While rice growers anticipate that the increase in rice is inevitable, the Minister of Agricultural Development (Mida) maintains that this is a situation that can be avoided. "As a government, we are considering any option so that the costs of inputs that are key to good production do not rise so much," stated the minister. Together with the Ministry of Agricultural Development, concrete actions are being worked on to contain the cost of fertilizers and other inputs for food production, highlighted Chapman. In this regard, Roberto Linares Tribaldos, minister of Mida, said that the increase is not inevitable as the producer suggests. Regarding the increase in fuel prices, it is expected that in the coming hours, the Government will announce a series of measures to mitigate the effects of the hike. Linares added that work is being done on various alternatives so that agricultural production is not affected by the increase in the costs of agrochemicals and fertilizers. He predicts that if the rain-fed rice producer was getting the grain out at $2,500 per hectare, this year it could reach $4,000. On the other hand, the Government will get up to date with the producers and will settle the debt they have with the rice growers, after the approval in the Council of Ministers of an extraordinary credit for $43.7 million. The producer explained that the rise in fuel affects them a lot, because agricultural machinery consumes a lot. Producer Bethancourt said that if the Government wants to prevent rice from rising in price, it would have to give a very high subsidy and President José Raúl Mulino has already said that there won't be. Panama is not a country self-sufficient in rice, which is the grain that the population consumes the most. Felipe Chapman, Minister of Economy and Finance, informed that actions will be taken to mitigate increases in the transport of food, both land and maritime. However, several projects are being executed to improve production, through the implementation of better policies and technological tools. A high-level commission will develop actions on the current situation that the world is experiencing. "There are many who are going to restrict and are going to store their production because it is not known what is going to happen," mentioned the rice grower. He highlighted that it is necessary to improve productivity, be more efficient, and use technology. He estimates that for the producer to receive a little profit, the pound of first-class rice must be sold for at least 75 cents. Alfredo Bethancourt, rice producer from the province of Coclé, informed that costs are rising exponentially.