Ydenia Doñé, spokesperson for the PLD Parliamentary Bloc, presented a proposal to the Government to create a special fund that would provide financial support to Dominican rice producers. The goal is to prevent sectoral bankruptcies in the face of the difficulties faced by the industry, including the entry of duty-free rice in the framework of the US-Central America Free Trade Agreement.
Context of the Rice Crisis
Doñé indicated that the massive influx of duty-free imported rice has affected the competitiveness of local rice producers. The volume of imports, estimated in thousands of tons, displaces domestic supply and puts pressure on prices to levels that do not allow for covering production costs. Additionally, Dominican farmers face high prices for fertilizers and other agricultural inputs, which reduces their profit margins.
Proposal for a Support Mechanism
The deputy argued that the current situation threatens the economy of provinces dependent on rice production and the circulation of resources generated by this sector. “We cannot allow our farmers to go bankrupt every year after so much investment is made in agriculture to have the products,” she expressed. Doñé maintained that the State must establish an economic support mechanism that allows responding to market fluctuations and guaranteeing the protection of national producers.
The Diplomacy as a Solution
Doñé also proposed that Dominican diplomacy take charge of finding a solution to the crisis. The legislator considers it necessary to negotiate adjustments within the free trade agreement that safeguard local production against the massive importation of duty-free rice.
Regional Economic Repercussions
The rice sector, which represents an important percentage of Dominican agricultural value, could suffer a contraction that would affect the productive chain and rural employment. The loss of income for producers would affect the circulation of resources in the provinces, impacting demand for other local goods and services.
Response from the Sector and Future Perspectives
The rice sector has supported the Government after the repeal of Decree 693-24 and trusts in renegotiating the DR-CAFTA. Doñé’s proposal aligns with the interests of rice producers, who seek protection mechanisms against unfair competition and increasing costs. If the special fund is approved, it is expected that a more flexible access to state credits and resources will be granted, facilitating investment in technology and high-quality inputs.
Credits: n.com.do
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