The drought could trigger the price of flour and measures are announced in Argentina

Published 2022년 10월 24일

Tridge summary

Argentina's government is contemplating emergency measures to address the severe drought impacting wheat production, which has already caused a potential loss of 3,500 million dollars and threatens to increase flour prices and general inflation. The Ministry of Economy, led by Sergio Massa, is evaluating the possibility of declaring emergency situations in drought-stricken wheat areas to offer financial aid to producers and ensure domestic supply. The Treasury is also planning to persuade rural producers to prioritize local demand over foreign sales. In response to inflation, which remains above 6%, the government is negotiating price freezes with various sectors, such as laboratories for medicines and clothing manufacturers, until the end of the year.

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Original content

The prolonged drought that extends through the country, considerably affecting the wheat harvest (mainly in the interior of the Province) and the fear that for this reason the price of flour and the rest of the prices will shoot up even more is a bad that at this time they seek to avoid in the Government. Specifically, in the Casa Rosada they are closely following the decline in the wheat harvest, which to date would accumulate a loss of at least 3,500 million dollars. Something that not only has an impact on lower foreign currency income, but also complicates domestic supply, generating strong pressure on the price of flour and other products in the basic basket. For this reason, the Ministry of Economy led by Sergio Massa is analyzing declaring several wheat areas in a state of emergency due to the lack of rainfall, which affects, above all, the interior of the province of Buenos Aires. The intention is that together with the financial aid that wheat producers could receive, the ...

Source: Chacra Magazine