“The business It has mocked the Peruvian State with the delay in the process of closing the contract, causing us enormous damage”, justified the minister the day before. Andres Alencastre following Union Sped’s decision to withdraw from the urea bidding process launched by Midagri.
However, what the head of Agriculture does not mention is that the Italian came in third place after gross errors in the election of the winner Ready Oil Supply, and just two weeks later – the Comptroller’s office crosses out – he was warned that always it did win, when the international price of fertilizer climbed back to above US$700 due to the closing of valves for Russian gas to Europe that occurred in this interval.
On August 2, AgroRural read the envelope where Union Sped’s offer of US$623 per ton was relegated. By then the global price still stood at $673, according to the Middle East marker. By the time the paperwork begins, in a highly volatile scenario, urea cost more than US$770 abroad. He no longer wanted.
From Cusco, President Castillo stated yesterday, very contrary to what he promised as a priority a few days ago, that urea, finally, “is not that important.” Instead, he once again insisted on the delivery of guano from the island and other organic fertilizers, such as chicken manure.
“We are going to guarantee the fertilizers, but I want to make a complaint public: black and bureaucratic hands in the sectors of the ministries intend to undermine the good intentions and decisions that this Government has,” he snapped.
To moderate the blow caused by the frustrated unloading of urea, almost a year after the start of the fertilizer crisis throughout the world – a period in which other countries did manage to supply themselves – Midagri has decided to redouble efforts to publicize its FertiAbono, a subsidy that will from S/498 to S/7,447 for farmers with a maximum of 10 hectares of 40 selected crops. They will access nitrogen, phosphorous and potassium (NPK).
The S/202 million that were destined for the importation of urea will be redirected to FertiAbono for the delivery of the complete fertilization combo (NPK) to registered farmers of up to 10 hectares, which will be delivered from September 16 at the latest.
What is not clear is what will happen to all the others, that is, the bulk of large-scale producers with more than 11 planted hectares who, precisely, were the reason for the first tender. From Conveagro, at least, they have requested the immediate departure of Minister Alencastre, either through the Executive or Congress, and they assure that they never proposed a new subsidy.
At the moment, President Castillo is trying to turn the page and proposes a local urea plant, while insisting on another of the cornerstones for his arrival in the Government: a new bill for a second agrarian reform, perhaps cloudier today never.
Climaco Cárdenas, president of Conveagro
”In Europe, the prices of fertilizers and natural gas have tripled. It is going to be more and more expensive and we are losing an opportunity, since we have the resource. We are not a poor country.”