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The supply of fertilizers and phytosanitary products will be compromised.
The production of agrochemicals and fertilizers is at a standstill in Argentina due to a lack of dollars in circulation in the country, warned the Chamber of the Argentine Fertilizer and Agrochemical Industry (CIAFA). “Currently there are companies with production lines suspended,” warned the entity that brings together Argentine input industries.
According to them, the production of inputs could be even more compromised if the Argentine Republic (BCRA) does not modify a rule that affects the import of essential raw materials for the industry. Recent changes introduced by the BCRA (communication A7622) in the criteria for paying for imported inputs make it difficult for dollars to leave the country.
The new measure limited the possibility of payment in cash known as CAD (“cash against documents”), as well as tax financing deadlines, which increased from 60 to 180 days from the registration of customs clearance.
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Furthermore, it left without effect the possibility of accessing the foreign exchange market with resources settled as advances or pre-financing of exports. This situation affects both local production, that is, raw materials, and products ready to be used by agricultural producers.
“If this situation continues, the supply of fertilizers and phytosanitary products will be compromised”, say the Chamber.
SIRA IS THE WAY OUT
In CIAFA's view, the approval of SIRA (Argentine Republic Import System) will be essential to normalize production. According to him, imports into Argentina are practically not being carried out, due to delays in the circuit, without there being clarity as to the reasons.
This has generated products that arrive and cannot unload at ports, or are awaiting approval in tax warehouses. To these products are added those that are in transit, close to arrival, and that do not yet have the corresponding approval.
In relation to agrochemicals, local production depends on the possibility of supplying raw materials for the manufacture of different types of inputs, taking into account suitability for use.
“We consider it necessary and urgent for SIRA to be approved and for payment conditions to be adapted to the reality that our sector demands. The expectation is that the dialogue we maintain with government bodies will translate into an adaptation of the measure, as has already happened on previous occasions, in order to contribute to achieving greater food production”, highlights CIAFA.
“We are in the last phase of the year with the need for inputs for summer crops, if we do not have fertilizers, for every dollar that is not invested in them, we will lose several dollars in foreign currency. Furthermore, the non-availability of phytosanitary products in a timely manner to control adversities will result in a significant loss of production and foreign exchange”, conclude the Chamber.
Source: Leonardo Gottems | agrolink
