One of the entities in the countryside warned that with more price controls and markets intervened there will be more inflation

The leaders of Argentine Rural Confederations (CRA) expressed in a statement their rejection of the package of measures announced by the Government over the last weekend to curb inflation. In addition, they assured that “with more price controls and markets intervened, there will be more inflation.”

It should be remembered that the Minister of Agriculture, Julián Domínguez, announced last Saturday a rise in oil and soybean meal retentions, as well as biodiesel. With the extra money raised by this increase, estimated at 420 million dollars, a stabilizing fund for the price of wheat will be formed, which will aim to subsidize flour for bakeries in order to stop the rise of bread.

In this regard, the CRA leadership pointed out that the creation of the wheat fund “is a covert retention”, and that together with the increase in withholding soy by-products, bringing food prices back to February and the careful pricing program, “are measures that discourage supply and generate shortages recurring”.

In addition to the above-mentioned problems that producers have to face, there is an increase in inputs and the cost structure, as a result of a higher international price of gas and oil, and their impact on fuel values, a centerpiece for the development of agricultural activity. On the other hand, the CRA document mentions the possibility of gas shortages in the coming months due to Russia's advance over Ukraine, with the eventual restriction of gas for industry.

“These are all factors that will increase inflation. For 20 years, producers and workers have endured an economy with price controls, market interventions, with the result of rising inflation,” said the entity headed by Jorge Chemes, where they also warned that the agreement with the International Monetary Fund (IMF) “is not an economic plan enough. It is essential to implement a comprehensive anti-inflation plan, before inflation spiralizes.”

demonstrations

Nowadays, due to the recent measures implemented by the Government to combat inflation, producers are carrying out mobilizations and assemblies in different parts of the country in rejection of them, and also because of the permanent change in the rules of the game and the high tax pressure. The protests that have already taken place were centered in the main productive provinces of the country: Buenos Aires, Entre Ríos, Santa Fe and Córdoba.

Although so far the Liaison Table has not commented on the trade union steps to be taken, it is not ruled out in the area of ruralism that there is a call for a national mobilization. Yesterday producers in southern Entre Ríos asked the presidents of the entities to set the day, place and time for a large call for producers in order to express the rejection of official policies.

Meanwhile, the leaders of the camp tomorrow will attend the National Congress to hold different meetings with deputies. A few days ago they sent to the political blocs with legislative representation a request for a hearing, amid the demand for “Institutional Order” for legislation on the subject of withholding. From that moment on, work has been done to set up an activity that will finally take place in the next few hours.

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