Government transfers S/1,070 million to promote actions to reactivate the agricultural sector

The Ministry of Economy and Finance (MEF) transferred more than S/1,070 million to finance the maintenance and improvement of irrigation infrastructure, as well as other actions that allow the prompt reactivation of the agricultural sector. The measure, which is part of the Con Punche Peru Plan, will provide support to this group that has been affected by the pandemic, the international rise in input prices and the social protests of the last two months.

The Minister of Economy and Finance, Alex Contreras Miranda, maintained that this is one of the highest amounts of resources allocated to the agricultural sector to promote not only its recovery, but also the improvement of efficiency through infrastructure development and progress of productivity, with the aim of achieving sustainable growth that allows the generation of employment and the improvement of farmers’ income.

“The country needs concrete actions, public policies designed with citizens in mind and that is what we are aiming for with this group of measures,” highlighted Minister Contreras.

According to Supreme Decree No. 024-2023-EF, the resources will be oriented to finance the maintenance of irrigation infrastructure, the development of a portfolio of rapid investments for the rehabilitation of canals and ponds, and to provide financing for business plans and reconversion productive.

It should be noted that the resources that the MEF will transfer will be made in favor of the specifications of the Ministry of Agrarian Development and Irrigation (Midagri), the National Water Authority (ANA), the National Agrarian Health Service (Senasa) and the National Forestry and of Wildlife (Serfor), charged to the resources of the Contingency Reserve of the Ministry of Economy and Finance.

What will these resources be used for?

With these resources, the maintenance and clearing of irrigation infrastructure will be carried out, estimating the cleaning of 63,784 kilometers of irrigation canals and drains, among others. This activity will require more than 3 million workdays.

In the same way, the development and execution of a portfolio of minor and rapid execution investments is promoted, which aims to rehabilitate 1,420 kilometers of canals in irrigation systems, as well as the development of 645 lakes, which are natural constructions that will allow Reserve water resources in productive irrigation areas. It is estimated that the execution of this investment portfolio will require more than 2.6 million workdays.

The financing of 843 business plans for more than 45 productive chains is planned, highlighting those plans aimed at coffee, milk, cocoa, potatoes, guinea pigs, among others, as well as 20 productive reconversion plans that allow the migration of products that have lost competitiveness. In total, it is estimated to benefit 30,290 agricultural producers nationwide.

Likewise, resources are granted for the Fund for the Financial Inclusion of Small Agricultural Producers (FIFPPA), which grants an incentive that allows reducing the interest rate, thus achieving the placement of more than 35,000 credits for farmers with up to 10 hectares at the national level. national.