Midagri will propose credit to subsidize the purchase of urea to producers with up to 10 hectares | Peter Castle | ECONOMY

After announcing this week the third process for the purchase of urea, so far in the Government of Pedro Castillo, the state of emergency in the agricultural and irrigation sector was extended today for 167 calendar days “in order to generate the necessary conditions for the continuation of productive activities and guarantee food production for the 2022-2023 agricultural campaign″.

This is what is read in Supreme Decree No. 012-2022-MIDAGRI, which bears the signatures of the president, Pedro Castillo, and the minister of Agrarian Development and Irrigation, Andrés Alencastre.

Alencastre announced that soon will propose the approval of a supplementary credit to subsidize other inorganic fertilizers for producers of up to 10 hectares of crops, which will make it easier for these producers to have said input for the 2022-2023 campaign.

From Midagri it was indicated that the third process is underway for the acquisition of urea for up to S/ 348 million to meet the requirements of producers who use said fertilizer for their crops of less than five hectares, in accordance with the provisions of the Emergency Decree No.013-2022.

In the recitals of the decree published today, it is stated that agricultural activity has been receiving the sustained impact of the increase in the international price of inorganic fertilizers, “which in Peruvian agriculture, in its greater proportion, are of imported origin, for which agricultural producers are totally exposed to variations in the international price of these raw materials.”, He argues.

“That, the development of agricultural activity in the country requires the use of inputs of national and imported origin, such as chemical fertilizers, pesticides, herbicides, seeds and even food for raising animals; the rise in the cost of importing these products generates a deterioration in the profitability of agricultural producers”, he refers.

Likewise, it is mentioned that according to the information of the National Agricultural Survey of the year 2019, more than 1 million producers use fertilizers and those who are dedicated to livestock activity (1.7 million producers dedicated to agricultural activity).

“Peru is dependent on imports of hard yellow corn (75% imported) and soybean cake (100% imported); These two inputs are the most used in the production of balanced feed; the increase in the price of inputs has increased between 15% and 25% in the total costs of milk production“, revealed.

In this sense, the rule indicates that at the beginning of the 2022-2023 agricultural campaign, the situation of vulnerability is accentuated for small agricultural producers and for the food security of the population.

“In addition, the adverse effects of COVID-19, coupled with the different external threats that affect the constant increase in fertilizer prices worldwide, put at risk the normal development of agricultural activities and their value chain, which which also affects the food safety of final consumers”, indica.

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