The comprehensive vineyard protection fund will help more than 1,103 in an area of almost 60,000 hectares.
He Executive power published a decree that estimates aid to Uruguayan wine companies who suffered the effects of the drought for 60 million pesos, in case areas of 60,000 hectares and in conjunction with the National Institute of Viticulture (Inavi).
The wine sector had a harsh economic impact due to the effects of one of the worst droughts in 100 years. As reported to Ámbito.com Eduardo Félix, in charge of the technical advisory sector of the Inavi, They had to face a loss of 30 million kilos of grapes, which represented a total of 600 million pesos, about 15.67 million dollars.
With this, the Executive approved the amount of 60 million pesos for the comprehensive protection fund for the vineyards where the Ministry of Livestock, Agriculture and Fisheries (MGAP) will transfer the money to Inavi in order to begin making the corresponding payments. These are already prepared to begin delivery, so those involved will begin to be communicated.
As for the design of the payment, it will be based on two components, according to El Observador, the first is for hectare where, progressively and decreasingly by area range from 0 to 5, 5 to 15, 15 to 25, 25 to 50 and greater than 50 hectares, payments will be made. While the second is related to the losses per kilobased on an average of the last three harvests of each plantation without climatic effects.
The number of benefited producers was determined from the registry held by Inavi, updated this year. Among them are 726 wine companiesan equivalent to 1,103 vineyards, which include winegrowers and viticulturistswith a total of 5,905 hectares.
The drought caused the loss of 30% of wine production
According to MGAP estimates, The drought caused the loss of 30% of the country’s wine productionsothe A compensation to winegrowers will cover up to 6,000 hectares affected throughout the national territory.
From the portfolio they considered that the vineyards produced in recent years between 90 and 105 million kilos annually and that this year, production was reduced to 70 million kilos.
The head of the MGAP, Fernando Mattos, had already admitted in a press conference that the idea was to help producers “who have less back”, so the kilos of grapes that were lost were used as criteria. “No producer can be left in the way,” he said at that time.
At the same time, the authorities recalled that producers have an option to credit in República Microfinance loans for 5 years with a rate of 0%.
Source: Ambito
