BRIEFS. Economy

Government subsidies increased by $15 million

The Instituto de Mercadeo Agropecuario (IMA) reported yesterday that the government will inject $15 million more into its food security program, the Programa de Seguridad Alimentaria, which provides food and other products to Panamanian producers and consumers at subsidized prices under the state brand name Compita. The government resorted to subsidies after record inflation in the country drove the price of some basic foods and other goods beyond the reach of many Panamanians.

The IMA's report stated that $10 million will be used to finance the purchase of fertilizers and $5 million for the purchase of food. Lentils, coffee, rice, cooking oil, sardines, and sugar are among the products subsidized by the government.

The sugar buying program has been critized recently by the Asociación Azucarera y Alcohol de Panamá (Azucalpa), which says that two intermediary companies, Cargill and InterBahia Invesment, appear to be unduly benefitting from the government purchase program.

The association also claims that it was never informed of the government's decision to start importing sugar at subsidized prices. Moreover, the group noted, the government has bought packaged sugar through the IMA at the same price it could be purchased locally.