Peru congressman insists on reducing ammonium sulfate freight

National legislator Carlos Anderson explained that despite the reduction of taxes on inputs for farmers being established since January of this year, the measure has not yet been implemented. He added that the Ministry of Economy and Finance should address this reform, but it is still not fully complied with.

Anderson demanded that the Ministry of Economy and Finance (MEF) reduce the costs of taxes on agricultural inputs. According to the Congress website, a law was passed in January of this year that reduces the tariff rates on these elements nationwide, but it is still not properly implemented by the ministry.

“I want to draw attention to the MEF (…) Six months after the law was passed, it has not been fully regulated. (…) There is a big problem,” expressed the congressman regarding the ministry’s inaction regarding the regulation.

On January 5 of this year, Law No. 31668 was promulgated in the official gazette El Peruano, aiming to reduce the cost of tariff payments from an average of 5% to pre-pandemic prices for agricultural inputs, which, according to the World Bank, represented around 0.7% of the total spent on such shipments.

The reason for taking this action was the economic crisis affecting the agricultural sector at present. According to Anderson Ramirez, the acquisition of fertilizers still harms the nation’s farmers, considering the failed fertilizer purchases during the government of former President Pedro Castillo, which, according to the national legislator, were due to the incapacity of that administration.

It should be noted that this law reduces the cost of tariffs for nitrogen fertilizers (urea, ammonium sulfate, and ammonium nitrate); crude soybean oil (crude soybean oil and cakes with other solid residues); and other wheat-based products (starch, cereal flour, groats, semolina, gluten, pellets, bran, etc.). Additionally, the law stipulates that the Executive Branch will be responsible for reviewing each product individually to analyze the reduction.

CURRENT SITUATION OF FARMERS
Before making these statements, Anderson Ramirez met with multiple representatives from the agricultural sector in the region. During that meeting, leaders discussed their issues with the national legislator, who assured them that he has twelve bills to support the farmers of Arequipa.

On his part, Daniel Lozada, President of the Agricultural Society of Arequipa (SADA), stated that he supports meetings with national government authorities, as these meetings help find solutions to the rising food prices.

“We must work with the main actors, who are our farmers and livestock breeders (…) We need to serve consumers with better quality and quantity,” explained Lozada Herrera.