Currently the bread was sold up to $320 the kilo in the AMBA, and they will look for it to be set at $220-$270. “If the trust works and we receive the flour at the agreed price, we will be able to meet those sales prices,” said Gastón Mora, president of the Avellaneda baker’s center.
A tense meeting is expected, after Feletti branded the different sectors of “speculators”. He accused the millers of “stockpiling 1.1 million tons of wheat, raising the price and strangling the supply.” But, in addition, he criticized the Federation of bakers: “They broke the February price agreement, where bread was between $180 and $220, because they said that the flour had risen, but now they say that the flour does not have as much incidence, so that we are going to see if we give them access to subsidized flour, what they want is to sell the bread for $300.”
The launch of the call Wheat Stabilizer Fund It will imply that the price of a ton of wheat will be fixed at $25,000, when in the first weeks of the war it had risen to $40,000, and today it is around $30,000. It will be for “all the flour for domestic consumption”, which is 6.3 million tons, Feletti anticipated. Thus, the 25-kilo bag of industrial flour will be set at $1,150. “Today we are paying $2,100 for the flour,” Mora said.
The challenge will be the “difficult implementation”, assured Feletti, due to how atomized the local businesses are. At next week’s meeting, the Secretariat will request a registry of bakers and the subsidy will be audited by the trust. The subsidy will be financed with the two points that were raised to the withholdings of soybean oil and flour, which will imply a $370 million.
“partial stabilization”
Anyway, Feletti anticipated that the measure is “partial stabilization.” At the start of the conference he revealed that he had spoken to the economic team about the “need” for a rise in withholdings for wheat, corn and sunflower. “And I stand by it,” he added. The problem with the trust is that compliance has to take place in “very atomized business sectors.” Instead, he said export duties “more effectively decouple the domestic price from the international one.” He believed that the impact on prices in March would have been less with this measure.
In any case, that same day, the Minister of Productive Development, Matias Kulfas, He spoke from the United States with Argentine journalists and ruled out changes in grain withholdings. “What had to be done has already been done,” she said.
Prices Care
On the other hand, the Ministry of Domestic Trade is working to renew Care Prices for the April 7: that day, the program will have a price increase in supermarkets, as it happens every quarter, and they expect it to start arriving in a limited basket of 60 products to nearby businesses, such as stores, Chinese supermarkets and neighborhood supermarkets.
Feletti’s dissemination of price increases of up to 30% made by companies in just three days infuriated the industry, with which they are negotiating. Companies expect an increase in the list of Care Prices of at least 9%, and even threaten to get out of the program for “cost increases.” On the contrary, the Secretariat will seek to validate no more than 5%and add new products, to the current 1300.
The new products will be flour and noodles, which will be financed with the wheat trust, for which 800 thousand kilos of subsidized flour have been committed. The problem will be compliance with the Close Care Prices, given that the list of 60 products will not have a fixed price on the packaging, as was the case with the “Super Close” program that had been negotiated Paula Spanish, former Secretary of Domestic Trade. The industries threaten not to supply this list and the local businesses do not want to present the list of businesses with their address and Cuit to the Secretariat so that they can load them in the Care Prices application.
Source: Ambito
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