The measure, which could impact the price of bread for consumers, was taken within the framework of the Argentine Wheat Stabilization Fund, which was created in March 2022 to “guarantee a reference value in the domestic market.”
The Commerce secretary set a 6% increase in the reference price of wheat and its derivative products for May, which implies an accumulated variation of 25.1% for the first five months of 2023.
The measure, which could impact the price of bread to the consumer, was taken within the framework of the Argentine Wheat Stabilization Fund, which was created in March 2022 to “guarantee a reference value in the domestic market that allows maintaining stability in the participation of the bag of flour as a component of the cost of the products derived from it”. The decision was formalized through Resolution 958/2023, published this Monday in the Official Gazette.
As provided, The new prices without taxes or delivery costs at the mill exit are: $41,986.42 per ton of wheat and $1,991 for 000 common flour in 25-kilo containers.
To these prices must be added the logistics costs by region, which will be the following: Province of Buenos Aires and City of Buenos Aires, 3.50%; Center, Cuyo and Litoral, 5.50%; NEA and NOA 7% and Patagonia, 10.5%.
“It is necessary to increase the supply of flour with compensation in the market and, likewise, update their values so that they are consistent with the evolution of the rest of the cost components of products derived from wheat flour”justified Commerce.
That Secretariat recalled that the accumulated increase in the reference price since May 2022 reaches 65.9%, below general inflation.
At the same time, he explained that The price update is determined monthly based on the following parameters:
– 40% of the Monthly Variation of the average FAS Theoretical Value in pesos determined by the Ministry of Agriculture of the month immediately prior to the one in which the compensation is calculated.
-30% Monthly Variation of the Wholesale Price Index (IPIM) of the last month available on the INDEC website.
-30% of the monthly Variation of the Salary Index published by the INDEC for the last available month.
– In the event that the formula yields a value of less than 1%, the minimum monthly adjustment will be that percentage.
Source: Ambito
