Various policies, protectionist or open, in the region, continue to generate price distortions and encourage the pursuit of market equilibrium through smuggling.
This is what is happening now with sugar in Nicaragua, where l relatively low prices favour its illegal departure, in this case to Honduras.
In an article in Laprensa.com.ni Mario Amador, president of the National Committee of Sugar Producers (CNPA), says: "There is an intention by some traders to take advantage of this price difference in the isthmus". "Nicaragua, according to industry figures, has the lowest sugar price of all the countries in Central America. This factor has an impact on product transfer to neighboring countries who pay more for the product. In Honduras, producers are paid $38.1 dollars for each quintal of sugar, in El Salvador the price is $38, in Nicaragua it is $31.8, and in Costa Rica $45.3. The average price of a quintal of sugar in the isthmus is $39.7 . "
Source: laprensa.com.ni
More on this topic
September 2011
The price paid for the grain in Costa Rica is more attractive to Panamanian producers than what they receive in the local market.
In Costa Rica, the producer receives $12 for a can of ripe coffee beans (20 to 25 pounds), whereas in Panama they receive $9.
Since the start of the coffee harvest in the province of Chiriqui on 25 August, 300 quintals of coffee have been sent to Costa Rica according to statistics from the Ministry of Agricultural Development (MIDA).
October 2011
Analysts estimate that demand will exceed supply for the first time in four years.
If estimates of future market experts are correct, the oversupply of sugar could persist until the end of 2013, significantly affecting prices of this raw material.
This conclusion follows from an analysis by Bloomberg, which surveyed 13 operators in the ICE futures market, of which nine said they expect a drop in raw sugar prices this week.
October 2010
The Chamber of Food Industry rejected the announcement of the Agro-Industrial Sugar Cane League to increase domestic price of sugar.
A recent announcement by the Agro-Industrial Sugar Cane League with regards to intentions of increasing domestic price of sugar, prompted the Costa Rican Food Industry (CACIA) to react immediately, believing that it is wrong and inappropriate to change the local price only when international price rises, problem caused by protective tariffs granted by the Government.
February 2010
In 2009, authorities confiscated 1.7 million pounds of smuggled dairy products, worth $4.4 million.
Orlando Carranza is the President of Proleche, the Dairy Producers Association of El Salvador. He stated that smuggling is the industry's largest problem, and that the situation has worsened in the past year.
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