The doubled cost of rice in local markets so far this year
is the talk of the day, after prices have moved up at a faster pace in the past
weeks. Speaking for the Ministry of Agriculture, its deputy secretary Jesus de
los Santos says the recent price hike is due to speculation of wholesalers
hoarding their stock. The government estimates there are 2.5 million pounds of
rice in wholesalers’ warehouses. Osmar Benitez, executive vice-president of the
Dominican Agribusiness Board (JAD), said that while rice should be reaching
consumers at RD$8 per pound, supermarkets were selling the staple item from
RD$9.50 to RD$12. Hoy newspaper reports that the price of a 125-lb bag of select
rice has jumped from RD$800 to RD$970. Pablo Ciorinero, president of the
Amaprosan wholesalers’ organization, believed the government should allow rice
imports to enter the country. Carlos Rodriguez, owner of a retailer operation at
the Hospedaje Yaque market, said that he has been told the cost of rice would
increase to RD$15 per pound by December. He attributed the rises to a local
scarcity. The Listin Diario reports that Agriculture Minister Eligio Jaquez
announced that 1 million quintals (100 million kilos) of rice would be released
to the market, so that the select grade of rice should not sell for more than
RD$9.25 per pound, and that intermediaries would be sold a pound of rice for
RD$7.30. Jaquez said import permits for rice would not be granted and that the
country has sufficient stocks to supply the market until April 2004. The motive
behind the commotion over the price increases, says Jaquez, is the wholesalers’
aim to receive lucrative contracts to import their rice. Over the years, the
government has also protected local rice producers, who have benefited from
preferential prices. Nevertheless, when the DR signs the free trade agreement
with the US next year, Dominican consumers could gain access to imported rice at
much cheaper prices if markets are freed and imports are not restricted to
government-picked importers.