Feb 09, 2016
BOGOTA, COLOMBIA -- Last week, USA Rice held high level meetings here with representatives of Induarroz (National Federation of Industrial Rice), Fedearroz (National Federation of Rice Producers), and the U.S. Department of Agriculture’s Foreign Agricultural Service. Of utmost concern was Colombia’s announcement that it would import 200,000 MT of rice this year, above and beyond this year’s tariff rate quota import amount of 94,209 metric tons from the United States.
El Niño impacts have reduced local production here in the United States’ third largest export market, and the strong U.S. dollar has reportedly led to Induarroz lobbying the Colombian government to ease import restrictions on milled rice. Specifically, they are requesting the ability to source milled rice from a wide array of countries, some of which do not currently have phytosanitary agreements with Colombia.
“Colombia currently has phytosanitary deals with the U.S. and Thailand, among other countries,” explained Carl Brothers, chairman of the USA Rice International Trade Policy Committee. “Those agreements took months to obtain, but there is talk of rushing through new agreements in a matter of weeks for countries such as Argentina, Paraguay, and Uruguay to help the millers meet the domestic demand.”
“Last year when Colombia had a rice shortfall, imports of U.S. milled rice jumped in response,” said USA Rice COO Bob Cummings. “The strong dollar is not helping us in Colombia, but the Colombian government’s continued tight import restrictions on U.S. paddy are also a barrier to U.S. rice meeting today’s exceptional demand in Colombia.”
Currently, U.S. paddy is restricted to certain mills located near the port of Barranquilla and the mills must follow strict guidelines for destroying the rice hulls due to the presence of tilletia horrida (false smut) in the United States. In a December 2013 report, Colombia’s Institute of Agriculture and Livestock (ICA) admitted that false smut actually exists in Colombia as well, and commenced an epidemiological study looking into the prevalence of this disease. The results of the study, which may or may not change the U.S. paddy restrictions, are meant to be announced next month.
“While we continue to push for a change on the regulations governing the import of U.S. rough rice, we also urge Colombia to adhere to their phytosanitary standards for all origins,” Brothers said. “We expect the same standards on any imports into the country and urge the U.S. government to make certain U.S. rice is not being discriminated against.”