Rice Producers Question Price Compensation Program

A group of rice producers from Panama East and Darién approached the facilities of the Ministry of Agricultural Development (MIDA), concerned about the owed payment of the Price Compensation Program.  This program is promoted by the National Government as a measure to support producers due to the increased inputs and to consumers so that the price of grain does not increase.

Due to their concern, the Minister of Agricultural Development, Augusto Valderrama, met with them.  Valderrama said that to date, about $60 million has been paid to these producers and he guaranteed that before this administration leaves, $20 million more will be paid out.  He highlighted that in these 5 years of government and despite the crisis due to the pandemic and the increase in inputs, the rice producers have been supported with payments so that they continue productive activity and thus guarantee the food security of the Panamanian people.  He assured that when this government took over the administration, the compensation was $7.50 per quintal (equal to 100 kilograms – about 220 pounds), which was later increased to $9.00 and currently $16 per quintal is being paid, which is more than double what was paid at the beginning, and that producers must recognize the increase that the government provided them in the times of the pandemic to compensate.

“We have the funds in the budget to pay off the $80 million, and extra budgetary funds have been requested to pay the $35 million that would remain in debt,” said the Panamanian agricultural head.  He said that the compensation in these five years is exceeding $450 million, about $420 million in rice, $30 million in corn and $18 million in milk.