Agricultural Export | MEF Measures to ‘Revive’ the Agriculture Sector: Will They Work? | Economy | Management | economy

activities

First, a fund of up to S/ 1,000 million is proposed for the recovery of the agricultural sector to mitigate the effects of the El Niño event (FEN). The initiative seeks to improve sub-schemes and better conditions for access to finance and repayment of loans. In addition, the Fund for Financial Inclusion of Small Agricultural Producers (FIFPPA) will be promoted with the aim of promoting interest reduction for Agrobank loans.

The second measure will be a series of investment incentives in the agriculture and agri-export sector. “Repealing the Agricultural Promotion Act has structurally damaged the sector and we need to restore its ability to reach external markets competitively.”Minister Contreras said.

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In this sense, three measures are proposed: maintain the percentage of Esalud contribution at 6% in 2024 and 2025, “A Bill to Allow Incentives for Hiring with Additional Exemptions”and expansion of agricultural insurance.

In this regard, Gabriel Amaro, executive director of the Association of Agricultural Producers Guilds of Peru (AGAP), welcomed the recognition of the difficult situation in which the MEF sector finds itself, but considered the proposed package insufficient. “The crisis is so deep that we’re not going to get out of it if we don’t encourage a series of additional measures.” He pointed out.

As for the contribution to Essalud, the current norms plan to increase it to 7% in 2025, 8% in 2027 and 9% from 2029.

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Although Minister Contreras did not elaborate on what the job incentives would be, he announced at the end of October that he intends to extend the proposed benefits to the agricultural export sector to reactivate the textile sector.

On labor matters, the bill for the textile sector states: “Taxpayers subject to the general income tax rule or the Mike tax system employing one or more new workers (…), (…) to determine the IR of the taxable years 2024, 2025 and/or 2026, you may apply a Additional deduction equal to 70%, 50% and 30% respectivelyThe basic wage paid to the new worker, regardless of their hours of work and contractual arrangements.”

“We’re pushing for them to devolve powers on economic matters. They’ve said they’re going to promote employment to encourage hiring, but that would require a bill, so it’s going to get into Congress and it’s going to fizzle out there. “We’re wasting time when we’re rushing it.”Amaro says Labor Minister Daniel Mouret criticized the absence of a meeting between the executive and trade unions last Monday.

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Amaro highlighted that one of the strongest blows to the sector when the Agricultural Promotion Act was repealed was the absence of tax measures. “The law made you pay 15% rent, which was logical because it was a sector in rural areas and allowed development. This year it will rise to 20%. Originally the benefits lasted till 2031.Remembers Amaro.

An action requested by AGAP And included in the government package is expanding credit programs. “We are tripling the size of the Impulso Myber program and expanding the reach of beneficiaries. Loans from S/ 5 million to S/ 10 million will be provided. The idea is to provide financial assistance to affected sectors such as agricultural exporters, farmers and companies in the fisheries sector.Contreras said.

“The previous action was not enough because the main employers who employ people in formal agriculture are big companies. It is important that they have removed it and we recognize the effort”Adds amaro. “But more can be done. In the 2008 crisis, MEF implemented deficiency. Why not do it again?”he added.

read more: Savimochik III: The project becomes public work if G2G is not made concrete

Irrigation schemes

One of the most controversial measures is the possibility of implementing the Savimochik III irrigation megaproject through public works with direct management if the agreement with the government (G2G) is not finalized.

“If a government interested in Savimochik does not appear this month, we will do public works through direct award. If so, it will be awarded in February,” he said.Contras noted.

“It goes to public works when it should be a concession. It’s not just infrastructure but also maintenance and operation. The government, with its shortcomings, doesn’t execute them properly., Amaro warns.

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Canada and the Netherlands are the only two countries currently in contention for the award of the Chavimochic III project. In July, the government indicated that there were four interested parties.

“It will be more efficient if done through G2G rather than public works. It costs a little more, but it can be done in a short time and within the established budget.Juan Jose Cardenas, lead infrastructure partner at Dhamma Legal Consultants.

Contrez pointed out “While Majaz is being de-banned, we are promoting other important projects that impact agriculture”. It will be about plans Two, They blow and Sinigas.

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project Two It is located on the border between Ayacucho and Arequipa. It seeks to develop 10,200 hectares of agricultural land at a cost of S/ 206 million. For its part, They blow (Moquegua and Arequipa) affecting 11,000 hectares and requiring an investment of S/ 617 million.

Cinegas is the most ambitious project on the list. Located in Áncash, it will impact 62,000 hectares with an investment cost of S/ 1.7 billion. It is currently in Proinversión’s project portfolio and the selection of the company responsible for the aforementioned supervision of pre-investment studies is expected to begin this month.

“We need to expand our agricultural horizons, and these are the infrastructure projects that we are going to bet on in this administration, with a commitment to removing their bottlenecks and creating faster mechanisms for progress.”Contreras concluded.