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Divergence in Price Fixing Compromises Rice Commercialization in Gaza

Divergence in Price Fixing Compromises Rice Commercialization in Gaza

About six thousand tons of rice from the 2021/22 agricultural campaign are stored in the district of Chókwè, in Gaza province, without any destination in sight. The situation has to do with the divergence in fixing the price of the cereal, between the producers and the company Limpopo Indústrias Alimentares, S.A. (LIA), owner of the buying, processing and selling rights of the rice produced in that irrigated area.

The farmers want to commercialize their production at a price considered by them to be fair, of 19 meticais per kilo, against the 17 meticais per kilo that LIA is willing to pay.

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Among other conditions put up for discussion by the producers is the prompt payment, rejecting completely the purchase on credit. With no understanding between the parties, the grain is stored in precarious conditions.

The fact is worrying the governor of Gaza, Margarida Mapandzene Chongo, who said that her Executive has already indicated the need for further dialogue between the parties. However, the producers insist that they will not accept any proposal other than the Government creating conditions to buy the rice.

With no compromise in any of the parties and with the bottleneck in the definition of the price, the LIA company supplies itself with rice produced elsewhere in the district and province.

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According to Mapandzene cited by Notícias, the solution for the commercialization of rice in the Chókwè irrigated area is through the existence of a development company, as already happens in Xai-Xai, the provincial capital.

The Gaza governor added that, regarding the Baixo Limpopo irrigation area, there haven’t been big problems, “since there is a development company that absorbs the rice through contract production. However, also in this irrigation area the price definition has been the main constraint,” she said.

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