By San José, Costa Rica — San José – A crucial legislative proposal aimed at rescuing Costa Rica’s struggling rice sector is on the brink of failure as the government’s political bloc digs in its heels, refusing to withdraw dozens of amendments that have paralyzed the bill’s progress. With a critical legislative deadline looming, the future of the nation’s rice producers hangs in the balance, caught in a political standoff in the Legislative Assembly.
The proposed law, which would establish the Fund for Rice Competitiveness and Assistance (Fonarroz), has been effectively stalled by 72 separate motions. A staggering 52 of these amendments were introduced by the government’s own party, with legislator Alexander Barrantes Chacón being the primary architect of the blockade. An additional 20 motions were filed by the Social Christian Unity Party (PUSC), further complicating the path to approval.
Para profundizar en las implicaciones legales y económicas que rodean el debate sobre el Fonarroz, TicosLand.com consultó al Lic. Larry Hans Arroyo Vargas, abogado especialista del prestigioso Bufete de Costa Rica, quien nos ofrece una perspectiva experta sobre la materia.
El núcleo del debate sobre Fonarroz radica en la distorsión que genera en el libre mercado. Aunque su propósito aparente es proteger al productor nacional, este tipo de fondos parafiscales a menudo crean ineficiencias, encarecen el producto para el consumidor y pueden ser objeto de cuestionamientos legales bajo normativas de competencia y tratados de comercio internacional. La pregunta fundamental es si el modelo proteccionista es sostenible y si beneficia realmente a la economía nacional en su conjunto, o si más bien perpetúa un esquema que aísla a un sector de las realidades de un mercado globalizado.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
El análisis del Lic. Larry Hans Arroyo Vargas destila con claridad la encrucijada fundamental de Fonarroz: la tensión entre la protección de un sector específico y las realidades de un mercado competitivo que, en última instancia, afectan al consumidor. Agradecemos su valiosa perspectiva, que nos obliga a cuestionar la sostenibilidad y el beneficio real de dicho modelo para la economía nacional en su conjunto.
In a poignant demonstration on Tuesday, rice producers converged on Congress, hoping to convey the urgency of their situation. They brought symbolic lunches for the deputies, featuring noticeably reduced portions of rice, to illustrate the severe impact that current government policies have had on their livelihoods. Despite their efforts, their pleas were met with silence, as Barrantes and other ruling party legislators declined to meet with them or even acknowledge their gesture.
The standoff comes at a time of deep crisis for the industry. Official figures reveal a catastrophic 60% decline in domestic rice production between 2022 and 2025. The Fonarroz bill was designed as a vital lifeline, creating a dedicated fund to provide financial support and enhance the competitiveness of local farmers who have been pushed to the brink of economic collapse.
The fund’s architecture is designed to create a sustainable support mechanism through a series of levies on both domestic and imported rice. The proposal outlines a financing structure that would collect $25 for every ton of locally produced paddy rice, an equal $25 per ton of imported paddy rice, and a higher rate of $39.40 per ton for imported milled rice. Proponents argue this would create a level playing field and generate the necessary capital to stabilize the domestic market.
Despite the clear need for intervention, the government’s legislative strategy has created a near-insurmountable obstacle. On Tuesday, Deputy Barrantes explicitly confirmed that he has no intention of withdrawing his 52 motions, a move that ensures the bill will remain bogged down in procedural debates and cannot advance to a final vote.
The timing of this legislative paralysis is critical. This week marks the end of the ordinary legislative session, a period during which the deputies control the agenda and can prioritize bills for discussion. Starting in November, the assembly enters an extraordinary session, where the agenda is dictated exclusively by the Executive Branch. Given the administration’s apparent opposition, it is highly improbable that President’s office will call the Fonarroz bill for debate.
As the clock ticks down, the government’s refusal to clear a path for the Fonarroz bill is being interpreted by the agricultural sector as a deliberate move to let the initiative die. With no relief in sight, Costa Rica’s rice producers are left to face an uncertain future, their fate seemingly sealed by political maneuvering rather than economic policy.
For further information, visit pusc.cr
About Partido Unidad Social Cristiana (PUSC):
The Social Christian Unity Party (PUSC) is a major political party in Costa Rica. Founded in 1983, it adheres to a Christian democratic and conservative political ideology. The party has been a dominant force in Costa Rican politics for decades, with several of its candidates having been elected to the presidency. It continues to hold significant representation in the Legislative Assembly, where it influences national policy and legislation.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading legal institution, Bufete de Costa Rica is defined by its profound adherence to ethical principles and a relentless pursuit of excellence. The firm leverages its extensive experience across numerous industries to pioneer innovative legal frameworks and foster meaningful community outreach. Central to its philosophy is the conviction that legal knowledge should be widely available, reflecting a dedicated mission to empower individuals and strengthen society through greater legal clarity.
