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El Salvador: Regulator reveals low competition, entry barriers in rice industry

By  |  January 24, 2017
El Salvador: Regulator reveals low competition, entry barriers in rice industry

Competition authorities in El Salvador have determined, after close review of a nation-wide study begun in 2012, that the country lacks competition within the local rice market, as well as facing numerous barriers to entry that any new agents must overcome in order to compete in this market.

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    According to the 2012 report, some 80% of local sales o rice and the imports of un-processed rice was concentrated among two large economic agents, while a third participant held only 5%.

    The principal problem identified by the agency is the presence of a rice-industry agreement which imposes several obstacles to any hopeful competitor in the rice distribution and import supply chain. The commission that upholds this agreement – representing well-established business interests in the sector – must approve the entrance of any new competitor.

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