Agricultural Expert Warns of Devastating Impact of DR-CAFTA on Dominican Rice Producers

Carlos Segura Foster. Photo by elneuvodiario.com

Rice Producers at Risk of Going Out of Business

Carlos Segura Foster, an agricultural expert, has warned that 80% of Dominican rice producers could go out of business due to tariff-free rice imports under the DR-CAFTA agreement. According to Segura Foster, around 30,000 to 32,000 producers, supporting 350,000 people, are in jeopardy.

Imbalance in Rice Production

He noted that 20% of producers contribute 80% of the rice output, while the other 80% only produce 20%. This imbalance also affects millers, with smaller producers and millers being especially at risk.

Rice Factories Decline

“Large producers handling over 500 tasks will likely survive, but smaller ones with fewer than 100 tasks may disappear, along with small and medium-sized millers,” he said. Rice factories have already declined from 119 in October 2024 to 108 in December, with 86% of inventory now controlled by only 19 factories.

Criticisms of Government Decree

Segura Foster criticized President Luis Abinader’s decree meant to safeguard national production, calling it powerless under the DR-CAFTA agreement. He also pointed out the government’s failure to maintain vital public policies, such as subsidies for agrochemicals, fertilizers, and seeds, which were stopped in 2022. “The government has prioritized big sectors, leaving small and medium producers at the greatest risk,” he concluded.

Beneficiary of Tariff-Free Rice Imports

The biggest beneficiary of the removal of rice tariffs within the Caribbean appears to be Guyana. Guyana is the largest rice producer in the Caribbean Community. The country has a well-developed rice industry and is a major exporter of rice, not only within CARICOM but also to other regions like Europe and Latin America.

Conclusion

The impact of the DR-CAFTA agreement on Dominican rice producers is likely to be devastating, with 80% of producers at risk of going out of business. The government’s failure to maintain vital public policies and its prioritization of big sectors over small and medium producers has only exacerbated the problem.

FAQs

Q: How many rice producers are at risk of going out of business due to tariff-free rice imports?
A: Around 30,000 to 32,000 producers, supporting 350,000 people.

Q: What is the current state of rice factories in the Dominican Republic?
A: Rice factories have declined from 119 in October 2024 to 108 in December, with 86% of inventory now controlled by only 19 factories.

Q: Who is the biggest beneficiary of the removal of rice tariffs within the Caribbean?
A: Guyana, the largest rice producer in the Caribbean Community.

Q: Why did Segura Foster criticize President Luis Abinader’s decree?
A: Because it was powerless under the DR-CAFTA agreement and did not address the root causes of the problem.