On May 1, the zero-tariff import quotas for black beans and white corn approved by the government came into effect to prevent a possible shortage in the country.
However, the entry of the product is not immediate since interested companies must request the Ministry of Economy (Mineco) to award the volumes and comply with various requirements. Furthermore, even if these spaces are awarded to them, companies import them when they decide so.
The mentioned quotas (quotas) consist of 15 thousand metric tons (MT) of beans and 55 thousand MT of white corn, and the authorized period will end on December 31. Until 3 p.m. on May 2, Mineco had not received any request to import these products.
Other products
Separately, quotas for yellow corn are now available for 750 thousand MT of which, as of April 15, 2024, 153 thousand 927.38 MT had been awarded and as of April 29, the figure was 188 thousand 528.18 MT.
In the case of the paddy rice quota, for 70 thousand MT, it has not been required by importers, but according to the ministry’s record, it is used regularly in the second half of the year.
The Vice Minister of Foreign Trade, Héctor Marroquín, reiterated that the quotas might begin to be used from May 1, but it depends on the companies if they use them or not and to what extent.
This is what will determine whether, in fact, the measure to reduce tariffs through an import quota with a quota will have an effect, and “that is what we would expect.” Due to the above, the term in which the market would see the entry of the product and a drop in prices, the vice minister said is quite uncertain.
Rising prices
For now, the prices of basic grains continued with an upward trend that began with the year and in the case of black beans, at the end of April and beginning of May the quintal cost Q700, Q25 more than what was reported at the end of Marchaccording to the weekly monitoring of the Ministry of Agriculture, Livestock and Food (Maga).
Grain registered an increase of 110% in 5 years, since in April 2019, the quintal cost Q323.97 and rose to Q682.50 (average) on April 18, 2024, while at the end of the month it stood at Q700 indicated.
This would be due to a decrease in supply in the market, due to the completion of the national harvest in producing areas, which would have been lower than expected.
Regarding corn, the price per quintal as of May 2 was reported at Q210 in the La Terminal market, which implies a slight decrease, since the average for the week that ended on April 26 was Q214.80.
That week, wholesalers indicated that there was a supply of the product, so the price showed a stable trend and the markets were supplied with stored national corn and grain of Mexican origin.
Meanwhile, white gold rice rose Q0.50 and is priced at Q408 per quintal (weekly average as of April 26) and according to monitoring on that date, national profits have imported and national products to supply the markets. El Maga added in its report that the trend for the current week is a decrease in supply and an upward price. The price as of May 2 was already reported at Q410.
Producer sector
Regarding the quotas and their possible impact on prices, Gustavo Rivas, president of the National Association of Basic Grains (Anagrab) said that the measure is correct, but it is not the solution. This position derives from the fact that the country has the capacity to produce basic grains, not only for the local market but also for export, but that capacity is not taken advantage of.
He also explained that prices rose due to losses caused by floods or droughts last year in several regions, apart from pests and hoarding by middlemen.
Given this, he presented a series of possible solutions “that have always been raised and have not been addressed,” such as a plan for planting corn, beans and rice crops for food security projects that is promoted by the governments in power.
Also promote a Strategic Reserves Project and a National Production Plan that ensures food, generates work, and improves the family and community economy.
During the week, parliamentarians from the Vos bench questioned the prices and the methodology for calculating the basic food basket and its cost, which is why they insisted on the need to address the price increases of products such as basic grains.
Regarding the quotas, they asked the authorities to seek to expedite the importation and the form of participation of companies that are really interested in importing, since on other occasions, some have requested authorization to be assigned volumes but do not specify the import or do not put it on the market when prices need to be lowered.
Import procedure
The procedure to request import approval under an authorized quota begins with a request to the Foreign Trade Administration Directorate of Mineco.
From there the administrative procedure is completed in 24 or 48 hours. The company must be registered to import.
- The quota allocation request can also be made online, as explained on the Mineco website, at this link
- The form must be filled out with information such as NIT, company name, legal representative, contact information, tax address and others.
- In the form there is the option to choose the commercial agreement or quota in question, and the 2024 quotas already appear.
- Additionally, you must attach the following documents:
- Copy of the Company or Company Patent or proof of registration of the cooperative, as the case may be.
- Copy of Proof of Registration and Update of Data to the Unified Tax Registry -RTU- updated.
- Copy of current Appointment and Personal Identification Document of the legal representative, as applicable.
- Copy of current Fiscal Solvency
- Copy of the owner’s current Personal Identification Document, in the case of individual companies.
- Registration form for the chosen contingent.
Interested parties must comply with the regulations for the Activation and Administration of the Tariff Quota issued for each product.
According to the website, any questions can be communicated to the Ministry’s telephone number 2412 0200, extensions 4203, 4209 and 4212.
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