American Expatriate Costa Rica

Public entities are forced to buy from CNP, although it’s more expensive

Since November 11th, an order issued by the Ministry of Agriculture and signed by President Solís, limits public institutions to buy generic, industrial and fishing products only to the National Production Council (CNP), with the prices defined by this entity.

According to Óscar Quirós, chief of the Agrocomercial Address Council, this measure seeks to promote the consumption of products produced by micro, small and medium-scale farmers, while ensuring the domestic producer a secure market for their production.

To this end, it uses article 9 of Law 8700 that establishes that the CNP should act as a facilitator for the access to this market by domestic micro, small and medium agricultural, agro-industrial, fishing and aquaculture producers, and that it can only sign contracts with another supplier when there is a lack of supply in the country.

The official said that the order arises from a request by small agricultural producers in the country,

who face plights with their production to compete at a disadvantage with imported products due to the price factor, since in most cases the imported product is cheaper than the local.

As an example, Quirós listed rice, beans, maize, beef, pork, chicken, fish, sugar, coffee, salt, dairy, products, among others.

The institutions obviously oppose the measure and they assure that the prices offered by the CNP are not very competitive.

However, Quirós said that many State institutions ignored the obligation to be supplied with the CNP and when they turn to third parties they are provided with imported products.

The order is now permanent.

crhoy.com