Bolivia’s soy farmers face a dire fuel shortage impacting their harvests in Santa Cruz. The crisis results from a decline in foreign currency reserves and local fuel production. Farmers express concerns over potential debt and food losses, calling for government action. The administration attempts to ease imports using cryptocurrency to pay for fuel.
In the Santa Cruz region of Bolivia, soy farmers are facing significant challenges due to a severe fuel shortage affecting their harvest capabilities. This predicament arises in the context of an economic environment where agriculture serves as a vital sector for the nation. The fuel crisis has culminated in long queues at filling stations and is attributed to declining foreign currency reserves and diminishing local gas production, which has reached alarming levels.
This situation presents a critical challenge for President Luis Arce’s government, which has attempted to mitigate the crisis through price caps and subsidies. Joel Eizaguirre, a soy producer from Santa Cruz, emphasizes that the absence of fuel will plunge farmers further into debt, potentially forcing them to make undesirable decisions.
According to Jaime Fernando Hernandez, the manager of the oilseed and wheat group ANAPO, inadequate diesel for agricultural machinery could result in substantial food losses, adversely impacting the entire food supply chain, including livestock, poultry, dairy, and egg production. He warns that the ramifications for productivity and food availability could be catastrophic.
Amid this turmoil, the Bolivian government has sought to alleviate the situation by facilitating fuel imports through innovative means, such as allowing the state energy company YPFB to utilize cryptocurrency for fuel transactions. Farmer Eizaguirre expressed a willingness to pay more for fuel than to risk an insufficient supply, highlighting his concern over the fluctuating exchange rates amid the ongoing crisis: “I personally would rather have fuel cost 11 bolivianos than not have enough fuel to harvest our grain, or not be able to plant during this approaching winter.”
The fuel shortage in Santa Cruz, Bolivia, poses a severe threat to soybean harvests and the agricultural sector. The crisis, driven by diminishing foreign reserves and gas production, has led to rising concerns over productivity and food security. Farmers, facing increasing costs, risk significant losses if fuel scarcity persists, underscoring the urgent need for effective governmental interventions.
Original Source: www.tradingview.com
