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The reference prices of corn, sugar and powdered milk rise: milled rice remains

The Ministry of Economy and Finance (MEF) reported that the reference prices of sugar, yellow corn (the main input of the poultry market) and powdered milk will rise for October and November. Meanwhile, milled rice will maintain its price.

According to Vice Ministerial Resolution No. 010-2021-EF / 15.01, published in the official newspaper El Peruano, the reference price for the corn will be $ 276 per MT (in the previous one it was 264), while the additional variable duty will be -75 dollars.

For its part, the reference price for the import of sugar will be $ 496 per MT (in the old one it was 476) and the additional variable duty is -45 dollars.

In the case of rice, the reference price is $ 580 (It remains with the band published on September 16), while the additional variable duty will be $ 22 for paddy rice and $ 32 for milled rice.

Finally, for the whole milk powder the reference price is $ 4,042 per MT (in the previous one it was 3,888) and the additional variable duty is -633 dollars.

“It corresponds to approve the reference prices obtained based on the prices observed in the period from September 1 to 30, 2021 and the respective additional variable rights,” said the MEF.

Strip: What are reference prices?

The Price Range, is a commercial policy instrument used to stabilize import costs and domestic prices of a selected group of agricultural products.

The instrument consists of setting a higher and a lower level for the international prices of each imported product and applying additional variable duties, in cases where the international price falls below the lower level of the Strip, or tariff reductions, when the international price exceeds the upper limit.

Its objective is to stabilize the import costs of the products included in the System, ensuring stable prices both to the producer, through a floor price, and to the consumer, through a ceiling price, applying for this Additional Variable Rights or Tariff Reductions on the CIF value of the merchandise.

Strip: How to calculate reference prices?

  • When the CIF price of the merchandise, is located below the Floor Price of the Price Range, Additional Variable Rights are applied (additional to the Ad Valorem Tariff). In no case will the sum of the Ad Valorem tariff and the Additional Variable Rights of a merchandise exceed 15% of its CIF value.
  • When the CIF price exceeds the Ceiling Price of the Price Band, it is necessary to apply Tariff Reductions up to a maximum equivalent to the Ad Valorem tariff applicable to the merchandise.
  • When the CIF price is within the Price Range (between Floor and Ceiling prices), only the Ad Valorem tariff corresponding to the merchandise is applied.

The Additional Variable Rights and the Tariff Reductions are applied according to Customs Tables approved every six months, by means of a Supreme Decree endorsed by the Ministry of Economy and Finance and by the Ministry of Agriculture and Irrigation, and the Reference Prices published monthly by Resolution of the Vice Ministry of Economy. Customs Tables and Reference Prices are provided by the Central Reserve Bank of Peru (BCRP).

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