Argentina: The wheat trust that the government sought to set up to lower the price of flour failed

Published 2022년 7월 9일

Tridge summary

The Argentine Federation of the Milling Industry (FAIM) has declined to join the wheat trust proposed by the Government to reduce flour prices, citing concerns over its effectiveness and negative past experiences with similar approaches. The small and medium milling industries association also opposed the trust, citing impossible reimbursement mechanisms and subsidized flour pricing. Despite these oppositions, the government insists on the trust's legitimacy and expects initial disbursements soon. FAIM has sought alternative solutions and left the decision to participate in the trust up to each miller entrepreneur.

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Original content

The Federation that brings together the milling industry companies refused to be part of the wheat trust that the Government sought to set up, from the Secretary of Commerce led by Roberto Feletti, to try to lower the price of flour. "It is not an instrument that combats this problem," they pointed out from the Argentine Federation of the Milling Industry (FAIM), through a statement. And they added: "Companies fearfully observe its operation given the negative experiences with models that proposed similar solutions." In that sense, they reported: "Most of the companies grouped in this federation ratify their refusal to this Trust and install the need to address alternative solution models and leave the decision to participate or not subject to each miller entrepreneur." FAIM's rejection adds to the decision made by the Association of Small and Medium Milling Industries of the Argentine Republic. “The reimbursement mechanisms and the requirements to participate in the intended ...

Source: Clarin