pulsed against the clock to avoid a jump of 40% in noodles and flour

flour and noodles

The first tool that was created was the trust to subsidize the price of flour and noodles sold in the Caring Prices program. In this case, it is handled by the same companies, so the exporters finance the food companies they sell to the domestic market. As this newspaper learned, This fund, which was initially for US$25 million, is practically exhausted, and local companies assure that it will be enough for next week.

This will be one of the main arm-wrestling that Hang will have to give: ask the exporters grouped in Ciara-Cec to add more funds. The local industry assures that, if the funding ends, they will not be able to continue supplying at the current values, and it would imply a jump of 40% “at least” in gondola prices.

Both the Government and the private sector assure that this trust obtained the results that it proposed, which was to sustain prices without causing them to skyrocket as a result of the increase in wheat at the international level. But it was for this reason that it was “emptied” faster than expected.

The Ministry of Internal Trade will ask the oil companies to contribute more funds to finance at least all of June, and then look for alternatives. But at the moment the companies “don’t want to”, commented official sources, so the negotiation is there. The exporters already finance the oil trust, a tool that was created with the management of Paula Español, which has funds for the next 3 months. They will ask you to contribute more to cover until the end of the year, an idea that “could move forward.”

the price of bread

With the beginning of the war in Ukraine at the end of February, the former Secretary of Commerce, Roberto Feletti, announced in March the launch of a third trust, this time to finance the price of bread. The difference with the previous two is that the management is public, managed by Commerce. What happens with this subsidy, which has US$400 million, is that it reaches only three companies: Molino Cañuelas, Molisud SA and Molinos Florencia, that received more than $1 billion in grants.

This tool, called “Wheat Stabilization Fund”, has the millionaire funds from the increase in withholdings by 2 points on soybean derivatives. Four more mills are expected to join in the coming week, including the Morixe company. With these amounts, the millers sell the industrial flour to the bakeries at half the market price, which seeks to contain the price of bread, which is already sold above $300.

According to Commerce, one of the reasons that explains the delay in putting this mechanism into operation is that there was “a lot of pressure from the industry not to work.” In addition, in the market they said that there is also “unregistered” production, while the fund that finances the BICE bank takes the “registered production”.

Initially, the Federation of the Milling Industry (FAIM) refused to join. But the price difference between subsidized flour and market prices is so great that many were forced to enter. In addition, the contract establishes that they receive the subsidies “in advance”, and once the state funds enter them, they begin to sell the subsidized flour.

Ignacio Noel, president of the Morixe food company, was upset with the operation of the trust: “We filed the papers more than two weeks ago and they still haven’t collected a penny”, he told Futurock radio. In addition, he criticized the subsidizing of Molino Cañuelas: “The company owes 300 million dollars to the state banks after a default, in the middle the shareholders bought fields and built a golf course, this is public, and this company was the first to entera month ago, and they liquidated him running $ 1,000 million, “added the businessman.