In the first surveys on the freezing of 1,400 products for mass consumption, the Ministry of Internal Trade, led by Roberto Feletti, detected that there was a product where the greatest shortages were recorded: sunflower oil. The average supply of this basket in supermarkets and wholesalers is 80%, while in oil it is only 55%.
Last week the members of Ciara were summoned to a meeting with Feletti within the Ministry of Productive Development. The president of the entity, Gustavo Idígoras, he assured that the production and supply is carried out in a “normal” way. Idígoras asked for the survey data and “promised” to indicate if there is any type of “speculation or stocking”.
Where there was agreement quickly is on the subject of prices. In the freeze, oil prices are 90% compliant. However, in order to maintain this value, the oil companies have a mechanism in which the exporters subsidize the prices of the oil companies they produce for the local market.
It is a cross-subsidy trust, for which they had estimated this year at US $ 190 million, which was about to run out, with a month still to go until the end of the year. For this reason, from Ciara they informed the Government that they will add another US $ 28 million to the compensations, and thus increase the intra-private sector subsidy by US $ 218 million in 2021.
“The price will be guaranteed,” said an official source. As this newspaper learned from private sector sources present at the meeting, one of the most important exporters asked about the future of the withholdings. The executive assured that having to allocate a part of the profitability of exports to subsidize oil companies in the domestic market means a “hidden retention” of 1.9%. And that from the parent company they questioned him for having to subsidize a private company in a “not very transparent” way.
The trust was signed between Ciara and the Secretary of Commerce in February of this year, and its completion date is January 31, 2022. It involved the supply of 29 million liters per month, 75% of the domestic market. The objective, as published by Ciara, was to ensure “fair and reasonable prices for consumers”, and avoid “closing of records or raising export duties.”
Source From: Ambito
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