Roberto Feletti sought to promote a trust to lower the price of flour.
The Federation that brings together the companies of the milling industry has refused to be part of the wheat trust sought to be established by the Government, from the Secretary of Commerce headed by Roberto Feletti, to try to lower the price of flour.
“It’s not an instrument that combats this problem”directed from the Argentine Federation of the Milling Industry (FAIM), through a statement.
And they added: “Companies are afraid to follow its operation given the negative experience with paradigms that suggested similar solutions“.
In this sense, they reported: “Most companies grouped in this federation affirm their rejection of this Trust and establish the need to address alternative solution models and they 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 trust are impossible for SMEs to comply with. Again the regime proposes to sell flour at a subsidized price (less than manufacturing costs), in order to receive compensation from the State without considering that wheat is the variable with the greatest risk of predictability in the world today, ”the Entity said. which brings together some 38 milling SMEs.
To the Government they defended the validity of the trust tonight and even suggested that there would be news of the first disbursements in the next few hours.
“It’s not too complicated what it takes to sign up, it’s very legal,” they suggest.
“It is requested that you have no debts to AFIP, that all workers are blank, that you prove your billing. They are rules imposed by public funds ”, they replied from the other side.
The creation of confidence was announced by Feletti in March, when wheat prices rose due to the conflict between Russia and Ukraine and reached 415 dollars per tonne in the Chicago market.
“Given the need to protect the internal market and the industry’s need to have a tool that enables the generation of certainty and eliminating the volatility of flour and wheat prices, the National Government has agreed that create a trust that includes in the domestic market 800 one thousand tons of wheat “, they indicated from the Government.
At the time, the Argentine Wheat Association (Argentrigo) raised criticism of the proposal. “The Government has no political margin to raise withholdings and it acts as a hold. This 800,000 tonnes of wheat will supply the price of flour and gondola noodles. Obviously this will be paid for by the producer, because although exporters will deposit it, they will end up deducting it from the purchase price to the producer. In addition to the fact that it works as a lack of stimulus, the serious thing about it is that there is no attack on inflation from a technical and formal point of view, therefore it will not work, ”asked its president, Miguel Cané.
The decline of companies
The Argentine Federation of the Milling Industry (FAIM), an entity that combines 96% of domestic supply and 100% of flour exports of wheat in the country, would like to inform the following:
We observe with concern and recognize the severity of the inflationary phenomena that have occurred at various stages of Argentina’s economic history, which have hit society’s purchasing power, affecting poor families more deeply in by the price of bread.
The Trust aims to stabilize the value of wheat due to external factors that have significantly increased its price, trying to prevent these increases from being transferred to wheat flour, all its varieties and derivatives.
We are convinced of this is not an instrument resistant to this problemFor this reason, we have the opportunity to present various alternatives to finding a tool applied as a public policy that ensures the final object proposed in this model.
The system does not favor or harm any company in particular, as the benefits and disadvantages of the system apply to all participants in an equal and proportional way in grinding each other; however, fears that companies are monitoring its operation because of negative experiences with models proposing similar solutions.
Therefore, most companies are grouped in this federation affirm their rejection of this Trust and install the need to address alternative solution models and leave the decision to participate or not be subject to each milling entrepreneur.
The mill will always be available to society, doubling its efforts as it has been its trademark throughout history, with or without armed conflict, with the sole premise of being able to continue bringing such a basic and necessary product to all tables and cupboards. of the country.
Source: Clarin
