ANPA warns U.S. rice imports could threaten Dominican producers

Santo Domingo.- The Dominican Republic is not adequately prepared to face the full opening of its rice market under the DR-CAFTA agreement, according to Tito Hernández, president of the National Association of Agricultural Professionals (ANPA).

Hernández made the statement following a U.S. request for the Dominican Republic to repeal Decree 693-24, which regulates rice imports. He argued that the country had nearly two decades to modernize and strengthen its rice sector before the agreement’s full market-opening provisions took effect, but that the necessary investments were not made.

He said priorities should have included modernizing irrigation systems, reducing production costs, improving agricultural research, renewing crop varieties, expanding financing and mechanization, and establishing a comprehensive national competitiveness policy.

Hernández warned that removing the decree could expose Dominican producers to greater competition from U.S. rice, which benefits from advanced technology, economies of scale, financing and government support.

According to his estimates, the measure could affect around 30,000 producers, more than 1.3 million cultivated acres, approximately 14.8 million quintals of rice production, and an economic chain generating more than RD$45 billion annually.

He warned that a sudden increase in imports could lower prices received by local farmers, lead to unsold domestic harvests, increase producer debt and reduce cultivated areas. It could also affect rice mills and other businesses connected to the sector.

While acknowledging that greater imports could potentially lower consumer prices, Hernández said there is no guarantee that lower import costs would be fully or permanently passed on to consumers because storage, processing, transportation, distribution and marketing costs are also involved.

He further warned that weakening domestic production could increase the country’s dependence on imports and leave it more vulnerable to international price fluctuations, supply-chain disruptions, geopolitical conflicts and weather-related events.

Hernández called on the government to avoid making a rushed decision and proposed a national rice roundtable involving government officials, producers, agricultural professionals, mills, universities, research centers and the Agricultural Bank.

He also proposed an independent assessment of the economic, social and food-security effects of opening the market, negotiations with the United States for a transition period and safeguard measures for affected producers.

In addition, he recommended creating a National Rice Competitiveness Program focused on reducing production costs, modernizing irrigation, strengthening research, increasing productivity and improving access to financing and agricultural insurance.

“We are not against trade or compliance with international agreements. We are against sacrificing Dominican producers to pay the consequences of twenty years of lack of preparation,” Hernández said.