Mexico started the regulatory process to open a quota for rice imports for 105,000 tons.
The quota is in the process of authorization by the National Commission for Regulatory Improvement (Conamer).
For this, the Ministry of Economy argued that based on the information released by the Food and Fisheries Information Service (SIAP), it was observed that in 2019, the national production of palay rice decreased 13.6% (it went from 283,703 to 245,217 tons -t-), as a consequence of the drought that occurred in the producing areas.
At the same time, the National Consumer Price Index (INPC) published by the National Institute of Statistics and Geography (Inegi), during 2017 and 2019, increased 9.23% (from 94,134 to 102,826 index units -ui-); from January to July 2020 it was 20.3% higher than the index for the same period of the previous year (from 102,172 to 122,866 ui); and, in July 2020 it registered an increase of 4.1% compared to the previous month (from 140,603 to 146,438 UI).
In the month of July 2020, the exchange rate stood at 22.40 per dollar, 17.6% higher than the same month as the previous year (from 19.05 to 22.40 per dollar) and 16.3% higher than the average in 2019 (from 19.26 at $ 22.40 per dollar).
In addition, the Ministry of Economy stated that the growing demand for rice due to the health emergency caused by Covid-19, as well as the drought conditions that occurred in 2019 and the variation in the exchange rate, “make it necessary to keep options available of suppliers to third countries, which contribute to the economic and social stability of the country, promoting price stability and encouraging the well-being of Mexican families, especially those living in poverty ”.
The palay rice quota seeks to increase “the national productive capacity”, encourage investment in the country, strengthen the agri-food chain, maintain sources of employment, and gradually reduce dependence on imports.
Rice is part of the food basket of the National Council for the Evaluation of Social Development Policy (Coneval) and of the basic basket defined by Inegi.
Mexican imports of paddy rice totaled $ 214 million in 2019.
All Mexican imports of this type of rice originated in the United States last year.