What Happened
President José Raúl Mulino has ruled out rice imports while domestic inventories remain available, rejecting a proposal from rice millers who sought permission to bring in a new shipment later this year.
“I want to make it clear that as long as there is rice in inventory, imports will not be allowed. Producers will not be left unprotected,” Mulino said on his official X account.
The position comes after the National Association of Rice Millers proposed analyzing the import of about 1.8 million quintals for October, plus an additional month of food-security запас, as a preventive step to help stabilize supply and prices.
Farmers Push Back
Rice producers strongly opposed the idea, arguing that Panama already has enough rice to meet national demand. Through the Federation of Associations of Rice and Other Grain Producers of Panama, the sector said current stock levels do not justify new imports.
According to the producers’ figures, inventories are expected to reach 4.8 million quintals by May 20, 2026, which they say is 1.3 million more than in the same period last year. They argue that this supply already includes rice that entered the system during 2025 and does not point to any shortage.
The dispute highlights a recurring tension in Panama’s rice market: millers are focused on supply stability and price management, while farmers are pressing to protect local production from competition that could weaken domestic sales.
Costs, Subsidies and Market Pressure
Behind the debate is a sharp increase in production costs, which farmers say has climbed by about 20% mainly because of higher fuel prices. Producers warn that if the pressure continues, consumers could begin to see higher rice prices between June and July.
The sector is asking the government for support measures, especially subsidies for fuel and fertilizers, similar to the aid granted to transport operators. Farmers say that without targeted relief, the added costs will be passed directly to the market.
Development Minister Roberto Linares said the administration is evaluating ways to support producers. He noted that agriculture faces a different challenge from transportation because farm machinery such as tractors and harvesters does not carry license plates, making it harder to identify beneficiaries through standard vehicle records.
Linares said the ministry is working on a database where producers would register their equipment so any future subsidy could be checked and verified by authorities.
Why It Matters
The standoff shows how central rice remains to Panama’s food supply and household budget. Any decision on imports can affect producers, millers and consumers at the same time, especially in a market where price stability and food security are politically sensitive issues.
For now, the government is holding the line in favor of local growers, while the rice industry continues to press for technical decisions based on international market volatility and the need to keep supply steady.