Price band would be restored before the end of the year

From before its conception, the Government of Pedro Castillo guaranteed agricultural producers that the price band would be restored.

Almost five months later, it is known that the Ministry of Economy and Finance (MEF) – after a series of dialogues with the Ministry of Agrarian Development and Irrigation (Midagri) and representatives of agriculture – would have prepared the application of this measure endorsed by the Organization World Trade (WTO) in favor of healthy competition.

“There is a proposal that we are coordinating (with Midagri), we are waiting to have the final version so that it can be released. I estimate that it should be there for this year ”, the Vice Minister of Economy told La República, Alex Contreras.

Scope

It is worth mentioning that the price range seeks to stabilize the values ​​of a certain group of foods in the face of the variation that may occur in foreign products that enter the Peruvian market – in this case it is milk, rice, corn and sugar.

In this regard, Clímaco Cárdenas, president of the National Convention of Peruvian Agro (Conveagro) explained that the price band is not a protection mechanism per se, but rather seeks to put an end to the distortions in prices typical of the agricultural policies of large countries and importers.

“Technically, the price band was born with the Free Trade Agreements (FTA). It seeks that our country can correct the distortions in prices generated by the agricultural policies of exporting countries that fully subsidize agriculture. It is these distortions that generate unfair competition for national agricultural production ”, he pointed out.

In this sense, Cárdenas projected that the restitution of the price band would benefit more than 800,000 producers.

The representative of agriculture even acknowledged that the competent authorities are also evaluating the inclusion of potatoes in this measure.

“It has to be the Christmas gift for the country’s producers (…) this mechanism is already applied but there are interests of large importing monopolies that have dismantled it in a way. It is not a privilege or advantage. It will not generate cost or shortages ”, he assured.

Finally, Cárdenas reiterated that the price range It is a mechanism that has already been applied and modified previously by the governments of the day, and it is necessary to rebuild it now in the face of international volatility.

At the end of this note, this newspaper learned that Next Tuesday, December 14, there will be a meeting between the producer associations at the national level and the corresponding authorities to fine-tune the indicated policies.

Standard price for fertilizers

Another important point on the agricultural agenda is the inclusion of fertilizers – such as urea – to the Fuel Price Stabilization Fund (FEPC) “in the very short term.” Cardenas Remember that currently farmers pay between S / 180 to S / 250 for 50 kg of urea, therefore, it is expected to reach S / 100 upon arrival at the FEPC. This measure would last only 6 months to cover the agricultural season that has already started.

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Clímaco Cárdenas, president of Conveagro

“It is intended that our country can correct the distortions in prices generated by the agricultural policies of exporting countries that subsidize agriculture (…) It is not a privilege or advantage.”