Noboa Signs Decree 307: State Authorized to Buy, Store, and Sell Rice and Corn Directly as 20,000-Tonne Emergency Purchase Targets Farmer Crisis

State Enters the Grain Market

President Daniel Noboa signed Executive Decree 307 on February 13, 2026 in Guayaquil, authorizing the Ministry of Agriculture, Livestock and Fisheries (MAG) to directly buy, sell, and store rice and corn — effectively making the state a market participant in Ecuador's staple grain trade.

The decree replaces Executive Decree 596 (April 11, 2025) and was published in the First Supplement to Official Gazette No. 219 on February 5, 2026.

Noboa described the first intervention as "the largest purchase a government has made all at once": an immediate acquisition of 20,000 metric tons of paddy rice directly from producers between February and early May 2026.

Why the State Is Intervening

Ecuador's rice sector faces a compounding crisis driven by three simultaneous pressures:

1. Mills paying below official minimums

Metric	Official	Actual
Short grain (220-lb sack)	$34 minimum	$20-25 paid by mills
Long grain (220-lb sack)	$36 minimum	$20-25 paid by mills
Shortfall	—	30-41% below minimum
Estimated farmer losses	—	~$100 million (primarily small producers)

2. Export market collapsed

Colombia — which historically imported 60,000-80,000 tonnes of Ecuadorian rice annually — imposed a 30% retaliatory tariff on February 1, 2026, in response to Ecuador's 30% security tariff on Colombian goods. The result:

2025 exports to Colombia: ~55,000 tonnes (already declining)
Current stuck inventory: ~60,000 tonnes with no export market
30% of rice paddies reported stagnant post-Colombia trade breakdown

3. Rising domestic costs without price relief

Consumer rice prices remain elevated at $0.60-$1.00 per pound despite the domestic oversupply — evidence of speculative intermediation between farmers and consumers.

What Decree 307 Authorizes

Authority	Detail
State purchases	MAG can buy rice and corn directly from producers at "fair prices"
State sales	Products can be sold at market rates — or below acquisition cost if justified by public interest
Strategic reserves	MAG authorized to create food reserves using owned or contracted infrastructure
Storage	Silos and warehouses must meet phytosanitary standards; may lease or build
Transportation	MAG can contract logistics for distribution to collection centers
Contract agriculture	Ministry can promote agriculture-by-contract arrangements
Donations	Products may be donated during emergencies to vulnerable populations

Anti-speculation provisions

The decree explicitly prohibits:

Contraband/smuggling
Price speculation
Hoarding (acaparamiento)
Product adulteration

Violations apply across "any phase of commercialization," with multi-agency enforcement coordination.

Farmer Reaction: Not Enough

Rice producers staged a February 9 protest in Santa Lucía and Daule led by Adriano Ubilla (Asopracort president) and Jorge Suárez (Frente de Organizaciones Sociales Agrícolas), presenting a manifesto with four demands:

State purchase of 69,000 tonnes of paddy rice (vs. 20,000 announced)
Archive the agricultural development law that would eliminate minimum support prices
Eliminate 15+ year agricultural kit programs they describe as "failed"
Build two 30,000-tonne storage/drying facilities in Daule and Babahoyo (covering 90% of production zones)

The farmers rejected prior government engagement, citing ~20 unproductive ministry meetings, and demanded direct presidential dialogue within 8 days.

Supporting Programs Announced

Alongside Decree 307, the government announced:

Program	Scale
Livestock packages	7,500+ ($5.1 million investment)
Subsidized crop insurance	62,000+ hectares ($2.1 million)
Credit line (7x7 program)	$52 million
Producer training	40,000 in Guayas
Land legalization	2,600+ hectares

The state enterprise UNA EP is coordinating with Corpcom (rice industrialists) to absorb 68,000 quintals of white rice — suggesting some industry cooperation with the intervention.

Inflation Context

The grain market intervention arrives as food inflation accelerates:

Metric	Value
Overall CPI (January 2026)	2.44% (sharpest rise since May 2024)
Food & beverages inflation	2.09%
Food CPI weight	25.1% of basket
Previous month CPI	1.91% (December 2025)

Rice and corn are foundational to Ecuador's food basket. Price stability in these commodities directly affects the 25.1% food weighting in the CPI calculation.

What to Watch

Track whether the 20,000-tonne purchase is executed by May and at what price — any premium above market rates represents a direct fiscal cost. Monitor farmer protests for escalation beyond the February 9 demonstrations — the gap between the demanded 69,000 tonnes and the announced 20,000 creates unresolved tension. Watch for Colombia rice tariff developments as part of broader trade war de-escalation efforts. Track whether MAG builds or contracts strategic storage capacity — the absence of infrastructure has been a structural bottleneck in previous intervention attempts. Monitor the agricultural development law in the National Assembly — if minimum support prices are eliminated legislatively, Decree 307's purchasing mechanism becomes the sole farmer protection.

Sources: El Comercio, El Universo, El Diario, Expreso, USDA FAS