Banana producers, traders and exporters have one month to register the export contracts for the fruit for 2024. The Ministry of Agriculture and Livestock (MAG) reminded the reminder through a statement for the banana sector released by the Regional Corporation of Ecuadorian Banana Growers (Agroban). 

The Ministry of State highlights that all contracts and renewals must be submitted by December 31, 2023. For next year, the minimum support price (PMS) of $6.85 for the box of bananas has been fixed. 

“All producers, marketers and exporters will be obliged to sign contracts for the sale of the fruit and the clauses freely and voluntarily agreed by the parties will be respected, as long as they do not contravene this law and its regulations," the MAG also recalled, citing Article 1 of the Banana Law, which only stipulates the signing of contracts as the only mechanism for the fruit to leave the country. 

However, Agroban indicated: "It is said that in 2023 there was only 40% of the fruit sold through contracts. The rest was spot (without contracts and at the local market price.) This is because the spot price in 2022 was high and producers ventured." The guild added that 2023 will close with a spot price of between $7.0 and $7.20, higher even than the minimum price to be paid to producers set for next year. 

For this reason, according to Agroban, it is necessary to update the Banana Law so that the spot business modality is legalized and producers and exporters who wish to choose this scheme are outside the informal sector. 

They indicated that for the 2024 contracts, some alternatives are being heard to sign contracts: 

PMS (Minimum Support Price) 

PMS + Bonus 

PMS + Sigatoka Control 

PMS + financing