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Midagri would deliver free fertilizers to farmers and no longer with a subsidy

Midagri would deliver free fertilizers to farmers and no longer with a subsidy

The head of the Ministry of Agrarian Development and Irrigation (Midagri), Oscar Zea, announced this Friday, May 6, that purchases of fertilizers from abroad, such as ureawill be carried out from Government to Government.

“There have been talks with the governments of Morocco, Venezuela and Bolivia. Once the Emergency Decree is approved, the purchase will proceed. The logistical coordination for the transfer is already being carried out so that it reaches the farmers quickly,” said Zea during a dialogue table with agrarian organizations in Ayacucho.

In this sense, the official pointed out that a proposal for an Emergency Decree (DU) was submitted to the Ministry of Economy and Finance (FEM) to be approved and thereby finalize the purchase of urea and other fertilizers.

According to Midagrithe DU project was delivered to the MEF on April 27 of this year.

“We await the legal framework, the negotiations will take place after the approval of the MEF,” said Paul Jaimes, secretary general of the Midagrito the Republic.

Fertilizers for everyone

Jaimes explained that countries such as China, the United States, Canada, Morocco, Indonesia, Algeria, Iraq, bolivia, Ecuador Y Venezuela They have been presented to offer price quotes and quantity of stocks that they can offer to Peru. But there is no trade agreement.

And it is that the goal, from Midagri, is to achieve an average of 250,000 tons “to meet national demand until the end of the year, for which there is a budget of S/ 950 million”.

A few days ago, the Midagri presented the explanatory memorandum of the Emergency Decree project, in which a fiscal estimate of 990 million 991,574 soles was stipulated. Of this amount, 974 million 277,954 soles were destined only for the cost of subsidizing fertilizers.

However, Jaimes refers to this newspaper that from the FEM They were warned that a subsidy was not feasible, so they have chosen to deliver the urea at no cost to the producers.

“According to article 60 of the Constitution, we cannot create a false business competition, that is, we cannot sell this product even if it is not subsidized because there are companies at the national level, as in the case of importers. In that sense, it will be distributed free of charge, it will no longer be subsidized in any way“, advancement.

“This is palliative assistance for the emergency, given that we do not have or do not have a fertilizer plant in Peru, for this reason it is logical to foresee that this will happen the same next year,” he said.

The distribution, operation and logistics of the nutrients would be in charge of Agro-rural to all farmers nationwide. The S/ 950 million also include these expenses.

The DU project considered agricultural producers and producer organizations as beneficiaries. Some of these had restrictions such as the number of hectares. However, Jaimes pointed out that there will be no distinction.

“Everyone is going to be given, we must be fair and equitable. I believe that the micro and small farmers are the hardest hit because they cannot cope with this crisis, given that their final product maintains that price and the fertilizer continues to increase”, he explained.

Finally, Paul Jaimes specified that “now we should not only worry about the purchase or payment, we will also have to consider the time it takes for delivery from the country of origin”, as well as the distribution period on Peruvian soil according to the need of the regions.

In fact, Midagri has in mind, once the DU is approved by the MEF, to obtain a first shipment of 45,000 tons of fertilizers from Bolivia (5,000 tons), Venezuela and Ecuador; both with 20,000 tons, respectively.

And it is that the transfer from Bolivia would be by land to Puno, in a period of 5 to 7 days; from Ecuador it would take 7 days by boat to Tumbes or Paita; while from Venezuela it would be necessary to wait a period of 30 days, also by sea. Meanwhile, transportation from Canada and the United States would involve a period of 30 to 60 days.

Source: Larepublica

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