The Ministry of Internal Trade advances in measures aimed at decoupling local prices from international ones, after the start-up of the wheat trust to dump 800,000 tons of this cereal into the domestic market.
The body led by Roberto Feletti aims to stabilize the price of the bag of flour for the production of breadand launch a stabilization fund for potatoes, onions and tomatoes, in conjunction with the Central Market.
In radio statements, Feletti said that “we must speed up decoupling measures between the domestic price and the international price, one that we have already put on the field is the trust to ensure the price of triple zero flour per kilo and the package of half-pound noodles.” kilo in Prices Care so that the price does not skyrocket”.
The wheat trust contemplates dump 800,000 tons into the domestic market, given the need to protect the domestic marketallow to generate certainty and eliminate the volatility of the prices of flour and wheat.
The products included in the trust will be marketed within the framework of the +Care Prices program, and the understanding will be valid until January 31, 2024.
Driven by the Russian-Ukrainian war, Wheat continues to rise in the Chicago Market (United States), and it came close to reaching US$ 500 per ton as a consequence of the scarcity in the production and supply of the cereal generated by the Russian invasion in Ukraine.
The secretary clarified that “it is not enough that there is quantity, but if the price in the domestic market is to be offered at the price in the international market, obviously we are going to pay the cookies at the international price and that is what the State cannot allow.”
On the other hand, he referred to bread, which has increased in recent days due to the cost of flourand said that this “immediately requires another 800,000 tons and we must find the decoupling mechanism.”
“Now we are starting a discussion on the issue of supplying other items, such as bread,” he assured.
“It is not enough that there is quantity (of wheat) but if the price in the domestic market is offered at the price in the international market, obviously we are going to pay the cookies at the international price and that is what the State cannot allow”Robert Feletti
In this context, he stressed that “the positive news is that wheat production was a record in Argentina, there are 22 million tons.”
“A part is exported and there is wheat in the domestic market; wheat cannot be lacking in the domestic market, it needs 7 million tons, there would be no reason for the mills not to be supplied,” he added.
In this way, the Secretariat implements decoupling measures to moderate the pressure of international food prices, while addressing the containment of prices in the gondolas through the basket of the program Prices Care and Cuts Care.
Launched at the beginning of the month, Care Cuts will be in force throughout 2022 in more than 1,000 outlets of the large supermarket chains with seven cuts.
The value per kilo of cut is $699 per strip of roast; $749 empty; $779 a kill; $449 a skirt; $639 for the roast lid; $799 a buttock and $649 a palette.
While, the oil sector trust was renewed for one year that seeks to ensure the stability of local prices of the oils most consumed by the population.
The program +Prices Care with 1,321 products, it was launched in January with a quarterly review and an average monthly increase of up to 2%, and it is available in supermarket chains throughout the country.
In the list agreed with some 150 companies, a wide range of essential products for purchases and daily consumption stands out, such as 45 varieties of milk (long life, children’s, flavoured, fluid and powdered), 22 presentations of herbs , 6 mold breads, 24 types and sizes of disposable diapers and 33 varieties of dry pasta packages, among other essential items.
At this point, the Secretariat is working to agree on a basket of 75 products within +Care Prices that is available in local businesses, guaranteeing compliance with prices and the profitability margin of these businesses.
