Pushed by large debt burdens, fiscal and trade imbalances, and high inflation rates during the 1970s and 1980s, most of the region's countries have developed self-sufficient policies for rice production to maintain low and stable prices for urban consumers. Source of agricultural development Traditionally, rice is a leading pioneer crop for area expansion and colonization in tropical Latin America and the Caribbean. Such growth in production has provided many opportunities for reactivating local rural economies. Moreover, nearly 4 million tons per year of rice byproducts are utilized by local feed and food agroindustries. Urbanization and economic liberalization are forcing the integration of regional rice markets and agribusiness.
Demand is increasingly high for healthy, diversified, rice-based, convenience foods.
Because of trade barriers, the international market for rice is highly unstable. Most countries do not rely on rice imports to meet domestic needs. Between 1966 and 1995, rice production increased from 9.8 million tons to 20.7 million tons. In 1993-1995, 6.7 Mha in Latin America were under rice. Of these, 3.1 Mha were upland, 1.1 Mha rainfed lowland rice, and 2.5 Mha irrigated rice.