According to a report published by the US Department for Agriculture (USDA), rice remains “one of the most important agricultural products” grown in the Dominican Republic (DR). In 2013, milled rice production totalled 536,022 tonnes. Approximately “30,500 rice producers, nearly 500,000 people are involved in the production, processing and marketing of rice” in the DR, contributing 6% to agricultural gross domestic product. The area under rice, most of which is irrigated, is stable. Two crops are harvested annually, with average yields of “4.5–5 tonnes/ha over the last ten years”.

Rice consumption in the DR in 2013 was estimated at 542,000 tonnes, with average annual consumption of 529,000 tonnes over the 2009–13 period. No significant changes in levels of rice consumption are expected in the coming period.

Dominican Republic rice production, consumption, imports and exports 2009–2013 (’000 tonnes)

Source: Ministry of Agriculture of the Dominican Republic, cited in USDA report, 1 April 2014, p. 10 (see below)

The DR is largely self-sufficient in rice, but has a tariff-rate quota (TRQ) established for imports of rice under the CAFTA–DR agreement. The out-of-quota tariff applied to other rice imports (not specified under the agreement) is 99%, but has a 20-year tariff phase-down period agreed. For the first 10 years, no tariff reduction has been applied, but from 2016 to 2020, tariffs will be reduced by 8% annually. From 2021 to 2025, this will accelerate to a 12% reduction per annum. However, “the DR negotiated a special safeguard with an additional tariff rate”, which “can be applied until the end of the tariff reduction period”. Occasionally the DR exports small volumes of rice.

The government maintains a large stockholding programme. Although stock levels were lower in 2013, they were still equivalent to approximately 40% of annual consumption. Rice purchased under government storage programmes is subject to price controls, and “a yearly price band (for paddy rice, FOB mill)” is established by the National Rice Commission (CONA), which is composed of the Ministry of Agriculture, producers, processors, retailers and other public institutions. The price band is generally based on historic prices, the variety of rice and production estimates.