Government suspends export of edible oils that generate $660 million in income

The Government temporarily suspended oil exports, with the aim of normalize supply and ensure that prices are accessible to the population. The decision was announced by the Minister of Productive Development and Plural Economy, Néstor Huanca. Oil exports generate US$660 million a year, according to data from the National Institute of Statistics.

The authority explained that the decision arises after a series of meetings with different actors in the oilseed complex, including producers, industrialists and distributors. According to Huanca, the market situation was analyzed and the causes of the increase in oil prices, which has been particularly noticeable in the last week. And he said that although the National Chamber of Oilseed Industries of Bolivia (Caniob) guaranteed that production and distribution were normal, problems were detected in the marketing chain. Caniob was consulted, but it was not possible to obtain his response.

The Government’s decision comes one day after President Luis Arce visited El Alto, where the residents told him: “Brother Arce! ¡Let the rice and oil go down, because you have made it rise a lot!” To which Arce responded: “Once again, like in 2007 and 2008, the cambitas are playing dirty games with us.” The president’s statements caused rejection in the region.

While Huanca justified that wholesale distributors reported a decrease in oil volumes delivered by industries. This fact has motivated the request for greater controls to prevent smugglingespecially to Peru. And as part of this strategy, controls have been intensified in markets and supermarkets. Huanca mentioned that, during these inspections, a shortage of the product was noted.

“Preserving the food security and economic well-being of our families, we have determined to suspend oil exports until the supply in the domestic market is normalized at a fair price,” said the minister.

The decision draws attention when the same Government, through its Vice Minister of Industrialization Policies, Luis Siles, reported on Wednesday that oil exports exceed 320,000 tons each year and internal demand is “a little more” than 88,000 tons, therefore, in Siles’ opinion there is a “surplus in production.” Taking these figures into account, only 27% of national production is exported.

The response from the business sector was immediate. Jean Pierre Antelo, president of the Chamber of Industry, Commerce, Services and Tourism of Santa Cruz (Cainco), criticized the measure, warning that could lead to the collapse of the productive sector. Antelo argued that banning exports without addressing the underlying causes of the problem will only exacerbate the crisis.

While the president of the Bolivian Institute of Foreign Trade (IBCE), Alan Camhi, points out that it is a big mistake to once again place restrictions on exports whenever the country needs the income of foreign currency immediately and constantly.

Branko Marinkovic, businessman and former Minister of Economy, also joined the criticism, pointing out that bans only generate shortages and that The Government is making past mistakes. While Pablo Camacho, president of the National Chamber of Industries, considered that this decision is a bad sign for the sector.

President Luis Arce traveled yesterday to Uruguay to participate in the semiannual summit of the Southern Common Market (Mercosur), the subregional economic bloc to which Bolivia has just joined. When boarding the presidential plane, A phrase he uttered on Wednesday in El Alto is causing rejection, especially in Santa Cruz.

That day, Arce led an event with which the works for the construction of the expansion of the sanitary sewage system for districts 4, 5 and 13 of El Alto began. Once the formality of that event was over, he greeted the attendees and, in that context, several citizens complained about the increase in basic products in the family basket.

“Brother Maple! So let the rice and oil go down, because you have made it rise so much!” The president responded: “Again, like in 2007 and 2008“The moneychangers are playing dirty games with us.”. These words, captured on video and widely disseminated yesterday through the networks, provoked reactions of rejection due to the tone with which the president referred to the inhabitants of Santa Cruz.

Political, business and social leaders in Santa Cruz described the statements as offensive; besidesthey demanded that he change the current economic modelbut he also publicly apologized for it. “Once again President Arce attacks Santa Cruz and its productive model. Bolivia is tired of the failed MAS model. “His attitude is pathetic!” said Vicente Cuéllar, the rector of the Gabriel René Moreno Autonomous University (Uagrm), who hopes that he will recant.

The governor of Santa Cruz, Luis Fernando Camacho, detained in the Chonchocoro prison since the end of 2022, stated that the current economic crisis facing the country It has to do with the economic model promoted by the MAS. “The hatred you have for Santa Cruz has no limits. “Santa Cruz supports the country’s food security, while your Government is responsible for the economic disaster we face.” In addition, he asked him to publicly apologize for those criteria.

From the agricultural sector, Mauricio Serrate, secretary of Fegasacruz, recalled that “Santa Cruz produces 70% of the food that Bolivia consumes” “Inflation is not the producer’s fault. The very poor economy is the responsibility of the president,” he told the DTV channel. Furthermore, he regretted that the president “does not have the pants” to point out these criteria during the sectoral meetings that have taken place in the face of the economic crisis.

Due to a significant reduction in exports, the country has stopped receiving foreign currency in the proportion that it had before 2023. In addition, the deficit supply of diesel has generated several criticisms from various sectors.

In contrast, leaders of the Movement towards Socialism (MAS) defended the president. Deputy Hernán Hinojosa said that Arce’s words were misinterpreted. “Arce called the cambitas with affection. There is no discrimination or insults; “His intention was to refer to speculators, not producers.”

Edwin Fernández, leader of the MAS in Santa Cruz, also called for calm: “There is no reason to resent. “The president never criticized the people of Santa Cruz, he only referred to those who make prices more expensive.”

Arce’s reference to the years 2007 and 2008 revives previous tensions, when the government of Evo Morales faced conflicts over the control of land use and quotas for agricultural exports.

Currently, rice and vegetable oil have registered significant increases in Bolivian markets. According to recent data, the price of rice rose by 12% compared to last year, while oil had an increase of 15%, attributed to production, transportation costs and lower supply in the market.

The Financial Law 2025 project, which includes measures such as the confiscation of products in cases of speculation, has also caused rejection in the productive sector. Although the Minister of Economy, Marcelo Montenegro, assured that these provisions do not seek to harm producers, the Eastern Agricultural Chamber (CAO) considers them a threat to the sector.
Montenegro will explain this project today before the Planning Commission of Deputies.

“It is incomprehensible that they make the same mistakes of the past”

Gary Rodríguez/ General Manager of the IBCE

Prohibiting the export of oil, hoping to lower its price, is the worst measure that could have been taken. Surely, smugglers and speculators will be jumping on one leg, with this measure, happy because they will have greater quantities of oil at a low price in the country to continue committing crimes with their illegal activity at the expense of the national industry and the agricultural producers that With so much sacrifice they contribute to the development of the country.

We do not understand how, after several ministers have met with the oil industrial sector in Santa Cruz, in addition, having done the same with the sectoral Chambers that have to do with the sector; Just after having verified compliance with the normality of oil deliveries for the domestic market by the industry, such a measure must be taken; It is incomprehensible and even frustrating to see how the same mistakes of the past are committed again.

It is not possible to understand how it is that, having detected that the problem is occurring at the level of marketing, with absolutely nothing to do with the industry, on the one hand, and having understood that the problem is in “smuggling to the Inversely”, as the President of the State himself says, a great productive effort will be stopped in one of the most difficult years for the oilseed sector, putting at risk the business of Bolivian producing and exporting companies, giving away our external markets to the competition of others countries, and depriving us of generating the dollars that we need so much at this time of scarcity of the US currency.

The export ban can bring serious problems not only from a business point of view, due to non-compliance with contracts, as well as the possibility of losing clients and markets that involved a lot of effort, time and money to conquer, and, worse, the The loss of the country’s image will be terrible, making us look like an unreliable supplier, where the rules of the game are changed without consultation overnight.

Controlling the rise in prices in the domestic market due to speculation and converse smuggling is not the task of private parties, but of the State. The ban on the export of oil, instead of solving the situation, will worsen the problem. Oil consumption in the country is barely 20% of total production, the Government knows this perfectly, the problem is not in production, but in the field of marketing, in the crime of speculation and smuggling, which in both cases is a responsibility, to be combated by the State.