Peru: Land use planning will avoid overproduction in the sector

Minister Montenegro highlighted the implementation of the Rural Bond, which will give 760 soles to producers.

The coronavirus health emergency creates a series of opportunities. One of them is to work in coordination so that production is in line with market demand, in order to avoid losses to producers due to the fall in prices, said the head of the Minister of Agriculture and Irrigation (Minagri), Jorge Montenegro, al El Peruano newspaper.

–In the last days, a series of measures were issued in favor of the agricultural sector, why is it so important to support it? 

 –Despite the health emergency due to the pandemic, this activity did not stop at any time. The order we receive is to ensure the supply and provision of food throughout the country.

Therefore, our goal is to provide agriculture with the tools and support they need so that the supply chain does not break.

The measures approved by the Government go that way. Some are of an economic-financial nature and others are of executing nuclei that will generate employment.

In the specific case of the Rural Bond, which became official on Sunday, it is aimed at giving 760 soles in a single navy in favor of households in the rural sector. This taking into account that the highest percentage of producers in these areas develops family farming.

We are also considering households that participate in this activity without being producers, such as day laborers and helpers, among others.

In total, one million 98,000 households will be favored with the Rural Bond, for which a total budget item of 836 million soles will be assigned.

Likewise, the necessary measures are being implemented to prevent beneficiaries from mobilizing in large numbers, wasting time, and becoming infected with covid-19.

–The 2020-2021 agricultural campaign begins in August, how do you coordinate with the agents linked to the sector? 

–In the face of adversity, opportunities arise and one of them is the ordering of the installation of each campaign. In June of this year, it will be possible to know the water balance that will appreciate how much will be used for a certain number of crops and hectares.

Then, we will do an analysis of that balance to approve it in July, so that the next agricultural season begins in August.

–What are the main advantages of this law? 

"We cannot continue in disorder." The ordering of agriculture will avoid overproduction in the sector.

With production above what the market demands, prices fall, affecting the cost structure of producers and generating less income for producers.

Crop planning in a serious and concrete way is the most appropriate. This will be achieved with the strengthening of user boards.

We are laying the foundations to start a good agricultural campaign in August. It will be scheduled and well sustained.

–What scenarios are handled for agro-exports this year? 

 –In the first two months of this year we did very well. We are still leaders in the export of blueberries and other fruits.

The avocado is going very well. Its shipments to the international market have not stopped, so we seek to give it the strength and guarantee it needs to at least have revenues this year similar to those registered in 2019.

Last year, total agro-exports recorded revenues of $ 7,500 billion.

With the health crisis, at the end of 2020 we project sales abroad similar to those recorded last year. Despite this, we believe that the world will need food, so we foresee a sustained recovery.

–What are your expectations about the performance of the agricultural sector for this year? 

 -In 2019 the gross domestic product (GDP) of the agricultural sector grew 3.7%. This year we would have wanted to exceed 4.1%, but under these circumstances, we are aiming for an expansion rate similar to that of the previous year.

All our efforts aim at that goal. We have more than half a year left to drive the sector's recovery.

Executing nuclei and itinerant markets

Last Saturday the Emergency Decree No. 041-2020 was published, with the aim of providing economic support to rural populations, in addition to guaranteeing water for the development of agricultural activity and food security in the country.

The provision approved the transfer of 150 million soles to the Minagri for the creation of daily wages.

“That aid will allow creating more than 30,000 wages for 90 days. This will be handled by user boards to clean and maintain their drains and intakes, which will also allow them to bring an income to their homes, "said Minister Montenegro.

He stressed that the strategy to promote agriculture is ambitious and that progress is being made in this comprehensive task.

He also highlighted that 900 itinerant markets have been programmed. “Through this initiative, products are brought from the countryside to the city so that they can be marketed at a fair price. Like Minagri, we cover freight costs and facilities so the producer doesn't worry. "

Montenegro highlighted that a significant number of local authorities seek to emulate these experiences to support families in the consumption of food.

To do this, they have called producers to carry out these itinerant markets known as 'From the farm to the pot'.


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