Bolivia’s farmers, particularly in Santa Cruz, are grappling with a fuel shortage affecting their harvests due to falling foreign reserves and local gas production. This situation poses a risk to the agricultural sector and could lead to significant food losses. The government is attempting to mitigate the crisis through subsidies and alternative payment methods.
In Santa Cruz, Bolivia, soy farmers are facing significant challenges due to a severe fuel shortage impacting their harvests. This situation arises from diminishing foreign currency reserves and a sharp decline in local gas production, which is now at critical levels. As agriculture plays a crucial role in Bolivia’s economy, this fuel crisis is particularly concerning for the government of President Luis Arce, which has attempted to stabilize prices through subsidies.
Joel Eizaguirre, a soybean producer, expressed his worries, stating that without fuel, farmers would incur deeper debts. He cautioned that this issue could lead producers to make alternative choices, ultimately affecting the broader agricultural sector. Jaime Fernando Hernandez, manager of the oilseed and wheat group ANAPO, highlighted that insufficient diesel for farming machinery would result in substantial food losses, including critical crops such as soy, corn, and sorghum, potentially devastating livestock production as well.
In response to increasing pressures from the economic situation, Bolivia’s government has initiated measures to facilitate imports. Among these actions, they have authorized the state energy firm YPFB to utilize cryptocurrency for fuel payments, aiming to alleviate some fuel constraints. However, producer Eizaguirre indicated a pragmatic approach, suggesting he would be willing to pay higher prices for fuel to ensure sufficient supplies for harvesting and planting, in light of the unfavorable exchange rates exacerbating the fuel crisis.
Bolivia’s soy farmers are currently facing dire challenges due to a fuel shortage that threatens their capacity to harvest and plant crops. This crisis is linked to declining foreign currency reserves and local gas production. The government’s attempts to manage the situation through subsidies and innovative payment methods may not suffice to prevent significant losses in food production, which could have widespread economic ramifications.
Original Source: money.usnews.com
