“We urge the authorities to urgently review these policies and work on the implementation of measures that promote an environment conducive to the development of wheat production. The elimination of export duties should be the first of them,” the entity stated.
At the moment, wheat pays 12% export duties. This percentage is added to the increase in costs and low international prices.
The entity stated that the withholdings go against the virtuous circle of production. “Far from promoting a favorable environment for the growth of the agricultural sector, limits the hectares planted, suffocates producers with minimal or negative margins and endangers the viability of their activities”described CRA.
For this reason, he urged the Government to take this measure urgently. In this sense, the report indicated that the withholdings “they strangle to death” the profitability of producers.
Wheat: the panorama of the sector
In the last period, the productive sector had to face increases in costs. From this point, marketing expenses, seeds, phytosanitary products, fertilizers, labor, insurance, among others, arise.
This explosive combo – said CRA – will cause a harvest of bankruptcy and aa consequent drop in investment in technology and in the quality of the crops. At this rate, the numbers reflected that the next wheat campaign would leave producers with their own fields with balances that would only be enough to cover costs. For those who plant in rented fields, the numbers would be negative.
“It is essential to recognize that withholdings not only negatively impact the agricultural sector, but also hinder the economic and social development of our rural communities. By discouraging production and investment, these policies are slowing economic growth and perpetuating inequality in our country,” CRA concluded.
Advertisements in favor of agriculture: what are the new benefits to encourage liquidation
The Minister of Economy Luis Caputo pointed to a elimination of tariffs for the import of fertilizers. “Attentive to the needs of the field, and in order to improve its competitiveness, we are going to advance in the elimination of tariffs applied to urea and its mixtures with ammonium nitrate, which currently stand at 5.4 and 3.6% ”, he mentioned in his X account.
“This measure will have a direct impact on agricultural producers throughout the country and adds to the benefits generated by the ordering of economic variables, which allowed the cost of these fundamental inputs for the agricultural producer to drop from USD 830 since February 15 to USD 570 today”, mentioned the head of the Treasury Palace.
At the same time, he stated that during the month the reduction in herbicide tariffs and an improvement in Senasa permit approvals were already announced. In turn, he added that the tariff on primary Atrazine will be reduced from 24% to 10.8%.
Source: Ambito
