The Minister of Agrarian Development and Irrigation, Andrés Alencastre, has reported that the approval of a supplementary credit will soon be proposed to subsidize other inorganic fertilizers for producers of up to 10 hectares of crops, which will facilitate them to have said input. Measure must be approved by Congress.
Likewise, the Government resolved today to extend the state of emergency in the agricultural and irrigation sector for 167 calendar days, in order to generate the necessary conditions for the continuation of productive activities and guarantee food production for the 2022-2023 agricultural campaign.
It should be remembered that, until June 30, the more than 133,000 producers who own between two and 10 hectares of farmland could request a bonus of between S/ 350 to S/ 1,300 to purchase fertilizers.
Similarly, the process of acquiring urea for up to S/ 348 million is still under way to meet the requirements of farm workers who use said fertilizer for their crops of less than five hectares, in accordance with the provisions of the Emergency Decree #013-2022.
Regarding the extension of the state of emergency in the sector, the decree states that agricultural activity has been receiving the sustained impact of the increase in the international price of inorganic fertilizers, “which in Peruvian agriculture, in its greater proportion, are of imported origin, for which agricultural producers are totally exposed to variations in the international price of these raw materials”, he maintains.
“Peru is dependent on imports of hard yellow corn (75% imported) and soybean cake (100% imported); These two inputs are the most used in the production of balanced feed; the increase in the price of inputs has increased between 15% and 25% in the total costs of milk production”, he indicated.
In this sense, the regulation indicates that, at the beginning of the 2022-2023 agricultural campaign, the situation of vulnerability is accentuated for small agricultural producers and for the food security of the population.
“In addition, the adverse effects of COVID-19, coupled with the different external threats that affect the constant increase in fertilizer prices worldwide, put at risk the normal development of agricultural activities and their value chain, which also has repercussions on the food safety of final consumers”, he indicates.