Faced with the escalation of prices due to the conflict in Ukraine, the Government created a wheat trust

Since last week, when the conflict began in Ukraine, prices on international markets have skyrocketed, so the government decided to create a wheat trust.

the executive plans, through this measure, to put control over the internal market and, above all, guarantee the production of food from the basic basket, such as noodles and flour, according to the government.

Faced with the escalation of prices due to the conflict in Ukraine, the Government created a wheat trust — The measure will be in force for one year.

Although the strategy takes place within the framework of the blow that the Russian invasion dealt the economy, the government This possibility had been contemplated for months, however, an agreement had not been reached with the businessmen.

Thus, the Secretary of Domestic Trade, headed by Roberto Feletti, assured that the trust will seek to regulate the sale price of wheat flour bread type 000 and dry noodles of home presentationincluded in the Care Prices program.

Last week there was a shortage of flour in the country due to the rise in prices.

This measure contemplates that some 800,000 tons of wheat be allocated to the domestic market to guarantee the supply of products, since local mills already have difficulties obtaining the cereal.

Likewise, the idea is that wheat and corn exporters contribute some US$25 million a year to subsidize the industry, that is, around US$0.50 per ton sold.

The Government wants to contain price volatility.

The sector rejected the government measure

Despite the fact that representatives of the industry were present at the meeting of the Ministry of Domestic Trade, most businessmen rejected the measure due to the negative effects it has in the long term.

From the Intersectoral Tables of Wheat and Corn they manifested to the executive what “this tool constitutes a negative stimulus that can affect predictability in the chain”.

The producers asked the Government to reconsider.

For this reason, they proposed alternatives to the proposal, since “El governmentor It must work on the real causes of inflation, which exceed the price of corn or wheat”.

In addition, the producers pointed out that in the past this type of strategy has left very negative repercussions for the market, since it does not respond to their needs.

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