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They warn that due to import barriers, there will be a shortage of fertilizers and plant protection products in the gross campaign

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The Argentine Chamber of Fertilizers and Agrochemicals Industry (CIAFA) has expressed concern about the impact of the new obstacles (Communication A7622) of the Central Bank of the Argentine Republic (BCRA) to the import regime, which change the operating conditions of companies and the criteria for paying for imported inputs which include raw materials and agricultural inputs.

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“If this situation persists, the supply of fertilizers and plant protection products will be compromisedor”, claimed by CIAFA.

“We believe it is necessary and urgent that the SIRA (Import System of the Argentine Republic) be approved and that the payment terms are adapted to the reality that our industry requires. The expectation is that the dialogue we maintain with government bodies will translate into an adjustment of the provision, as has already happened on previous occasions, in order to contribute to the achievement of greater food production”.

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The new provision limits the possibility of so-called CAD cash payments (cash against documents) and also the terms of financing which go from 60 to 180 days from customs registration. It also leaves the possibility of entering the foreign exchange market with funds cleared as an advance or pre-financing of exports ineffective.

On the other hand, CIAFA has indicated that “the approval of SIRA is practically not carried out, due to delays in the circuit, without the reasons being clear”. As a result, they sue there are products that have arrived – both plant protection products and fertilizers – without the possibility of landing in portsmainly fertilizers, or awaiting approval in tax warehouses, to which are added those in transit, close to arrival, which do not yet have the relative approval.

Likewise, CIAFA warned him Imported raw materials needed for local production of these inputs do not enter. “Today there are companies with suspended production lineswaiting for these raw materials to be able to produce these products in our country,” they warned.

As far as fertilizers are concerned, import statistics prove it One million tonnes less than in 2021 is already recorded for the same periodand it is estimated that for this campaign it will be necessary to import 1 million tons of fertilizers and raw materials, which will have to be approved in time to guarantee their use in the fields.

As regards plant protection products, they ensured that local production depends on the possibility of supplying raw materials for the manufacture of different types of inputs, some of which are seasonal, as well as fertilizers, with which, “what is not produced now, will be available for use in this campaign,” CIAFA said. “Input supply for gross campaign and regional economies depends on the agility and adequacy of implemented measures“, warned entrepreneurs in the sector.

“We are in the last phase of the year with input needs for summer crops, If we don’t have fertilizers, for every dollar that isn’t invested in them, we will lose several dollars in foreign exchange. In addition, the non-availability of plant protection products in a timely manner to control adversities, rwill result in a significant loss of production and foreign exchangethe House said.

Source: Clarin

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