The publication of the data, on Thursday of last week, led to a questioning by the exporters of the Secretary of Domestic Trade, Martín Pollera, appointed by the Minister of Economy, Silvina Batakis. “I took the data on the increase in oil to the new Secretary of Commerce, I told him, see, this was what I was asking you, the trust is not working”, said Gustavo Idígoras, president of the Chamber of the Oil Industry and the Cereal Exporters Center (Ciara-CEC), on Futurock radio.
It is a cross subsidy between the same industry, in which exporting companies subsidize those that supply the local market, based on an agreement signed with the Ministry of Commerce. According to data from Ciara, the agreement with the Secretariat authorizes a 3% increase in oil when it leaves the factoryso food increased a quarter of inflation in 2022. The factory outlet price is $234, but on shelves it sells for almost double that. When asked why it happens, Idígoras said: “There is an indexation in all distribution channels and points of sale, which occurs for other reasons, they receive a high-selling subsidized product, but they have other incremental costs, such as rent , transportation, salaries, etc.
For this reason, he asks to modify this intervention mechanism: “It is a problem, because the internal market it has a subsidy level of US$200 million, and the effect is not given to the consumer. You have to find some other way because otherwise the consumer won’t see the effort made by the industry,” he added. The agro-export industry In 2022, it will have disbursed more than US$500 to subsidize food in the domestic market.
For the trust between private oil disbursed u$s 200 million, which will end in September, and talks have already begun with Pollera to expand it. Furthermore, after the outbreak of the war in Ukraine, they disbursed u$s 25 million to subsidize noodles and flour that were sold in the supermarket in the Care Prices program. Nevertheless, dry stew type noodles increased 12.9% in June compared to May, with a package of 500 grams at $122.
On the other hand, the Government implemented a third trust, managed publicly, to subsidize the industrial flour of the mills to try to contain the price of bread. Funding is carried out with the increase in the withholdings of soybean derivatives, estimated between US$300 and 400 million by 2022. With record international prices and no change in grain withholdings, the liquidation in the first half of the agribusiness was US $ 19,143 million, a record for the last 20 years, according to the Cepa center. For all of 2022 it is expected to be above US$40 billion.
Bread increased last month below the general level, by 3.4% in the case of flute bread and 3% for table bread. The common wheat flour 000 had no variation from one month to another (0%). However, in the accumulated of the year, the opening of bread and cereals increased 43.7% and 69.9% in the interannual, in both cases above the general price level, and also above the food category.
Source: Ambito
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