MercoPress. South Atlantic News Agency

Ecuador short of rice, looks to Mercosur members as a potential supplier

Colombia is the main rice supplier to Ecuador, with private companies opting to import to meet market demand

Mercosur members have been added to Ecuador’s list of potential rice suppliers as the Andean country seeks to import rice to keep its stocks full, as they have been significantly depleted due to crop issues. Ecuador shortfall production could reach some 200,000 tons.

To stabilize the market, the Ecuadorian government has imported a first batch of 30,000 tons of rice from Colombia, and the Minister Agriculture has indicated that rice imports will not be limited to Colombia but include shipments from Argentina, Uruguay, and Brazil.

The Minister of Agriculture and Livestock, Eduardo Izaguirre, disclosed that even though the retail price of rice from Colombia is US$ 4,6 per kilo, the intention is to lower this price. “The entire continent is currently experiencing issues with rice crops, so we aim to bring the price back to our normal range, between US$ 3,2 and US$ 3,5.”

Colombia is the main rice supplier to Ecuador, with private companies opting to import to meet market demand. Weekly shipments are projected to follow the first purchase of 30,000 tons, until price stability is achieved. The minister expects that imports this season could potentially reach 120,000 tons.

In addition to Colombia, Ecuador is also collaborating with Argentina, Uruguay, and Brazil as exporters due to their price competitiveness and delivery timeframes. The minister emphasized the need for coordination among these countries to ensure an importation process that does not interfere with the local crop harvest .

On June 21, President Guillermo Lasso confirmed the import of rice to protect consumers. He stated, “If the price increases, we will have to import rice to maintain prices.” The president dismissed speculation about industry hoarding, asserting that the private sector will be the importer.

The current strategy aims to address a potential deficit in rice production. Minister Izaguirre explained, “Under normal circumstances, Ecuador typically plants 150,000 hectares of rice during the summer. However, as of the latest data, only 72,000 hectares have been planted. We need to promote planting this month and the next.”

The minister assured that importing 30,000 tons of rice from Colombia would not affect the July harvest in Ecuador. The government is closely monitoring production and deficits, continually assessing planted hectares to gauge future supply.

Moreover, the imported rice will be of superior quality. Izaguirre stated, “Today, it is the highest quality rice because it must compete on supermarket shelves.”

Trading companies from Argentina, Brazil and Uruguay have initiated negotiations with Ecuadorian counterparts, considering Ecuador a significant market for rice shipments of up to 200,000 tons from the Mercosur region, as confirmed by industry sources.