He National Yerba Mate Institute (INYM), which until March 31 was in charge of setting the prices of said product, lost this power due to a new decree promoted by President Javier Milei.
Therefore, from now on, producers will decide whether to accept the established price or not and As of April 1, the price of yerba mate will be deregulated.
The INYM warns that this change could harm small producers., since the price is linked to the volume of stocks of yerba canada that the industries maintain. If reserves are high, the price tends to decrease due to less urgency to purchase.
Regarding the situation of the INYM, which has been without a president since last December, the directors who advocate for regulation anticipate that the negative impact on small producers will not be felt immediately. However, they project that by August, when industries have rebuilt their stocks of grass, the pressure will intensify.
The Green leaf production in the first months of this year reached its highest level in four years, with 55 million kilos, according to INYM data. Although stocks typically last 8 to 9 months, sometimes they reached 12 months, equivalent to the supply of the domestic market.
This deregulation is not limited only to raw materials, but also impacts the pressure on industries to supply shelves with weed at affordable prices. For years, companies had to offer products at government-controlled prices.
What will happen to the wheat trust and how it impacts the price of bread
On the other hand, the Government will also announce this week the end of the wheat trust that was created during the administration of Alberto Fernández.
“We had announced the desire to end each of the Trust Funds that depend on the money of the National State. Next week the first of them will be formally eliminated: it had 69,000 million pesos senselessly squandered, presidential spokesperson Manuel Manuel assured this Friday Adorni from his X account.
He wheat background had been created for himto price stabilization, especially bread, according to the Fernández administration. It consisted of subsidizing the companies, the mills.
Total, In the first nine months of 2023, the 29 trust funds analyzed by the Government had planned income of almost $1.5 trillion and expenses of just over $1 billion, according to data from the National Budget Office of the Ministry of Economy.
All trust funds were directed to subsidize the 25 kilo bag of 000 common flour, which is what bakeries buy to make bread and for second industrialization. It is the one used by the mass consumption companies to produce cookies, sliced bread, empanada covers, among other products.
Although it had criticism from the sector, the price of bread managed to be below inflation with the creation of the trust. The question is: Will the price of bread increase from now on?
Source: Ambito
