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Ecuador: A 'Light' Reform to the Banana Law

7.9.2018

The Association of Export and Marketing of Bananas (Acorbanec) of Ecuador has suggested the need to allow producers to plant new banana plants at the discretion of the Government. Since the existence of this prohibition banana producing countries like Philippines, Mexico, Colombia, Guatemala and Nicaragua have continued planting, while Panama will soon be planting an additional thousand hectares in the new Del Monte project.

In relation to the price, Richard Salazar, head of Acorbanec, states that there is a spot market that obeys the new world reality, with countries where different prices per box are paid, according to the specific time of the year. The spot or off-contract price, which is now illegal, reached US$ 17 or more this year. He adds that the assembly members seek to avoid new plantings so that there is more speculation.

The Food Sovereignty Board analyzed the report prepared by the subcommittee on the draft Law Amending the Law that Regulates the Production and Marketing of Banana, Plantains and other Musa for export.

During the meeting, comments were presented to the project of reforms addressing technical and production issues by the members of the Commission headed by Ricardo Zambrano, who requested that it be reformulated to generate a final report of consensus, which will be presented to the National Assembly.

Acorbanec wants at least 30% of the exported boxes to be under the spot modality (without contracts), because it "adjusts to the reality of the market".

Many producers (including the largest ones), when the spot price is above the official price, do not comply with the contracts and sell freely to whoever pays them the most. Banana legislators want to keep the official price despite the fact that it is constantly violated.

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