Bolivia’s soy farmers are facing significant challenges due to a fuel shortage that hampers their harvest. This crisis stems from dwindling foreign currency reserves and local gas production. Farmers express concerns over worsening debt and potential food production losses, prompting the government to explore measures to ease imports, including cryptocurrency payments. Farmers prefer pricier fuel to inadequate supplies, emphasizing its critical role in sustaining agricultural operations.
In Bolivia’s agricultural region of Santa Cruz, soy farmers are increasingly concerned about a fuel shortage that is obstructing their harvest capabilities. This crisis is critical for the nation, where agriculture plays a significant role in the economy. The fuel scarcity is attributed to a decline in foreign currency reserves over the past decade coupled with diminishing local gas production.
Long queues at gas stations highlight the repercussions of the fuel shortage, alarming the government of President Luis Arce, who has tried to control prices through subsidies. Joel Eizaguirre, a soybean producer, voiced concerns that without fuel, farmers may face deeper debt, leading to adverse choices that would impact the agricultural sector overall.
Jaime Fernando Hernandez, manager of ANAPO, underscored the severity of the situation, warning that insufficient diesel could result in substantial losses of food products like soy, corn, and sorghum. Such losses would extend beyond crops, affecting the production of livestock, poultry, and dairy products, resulting in a potential catastrophe for food supply chains.
In response to the escalating fuel crisis, the Bolivian government is under pressure to address the situation by easing import regulations. Measures include allowing state energy company YPFB to utilize cryptocurrency for payments related to fuel shipments. Farmer Eizaguirre expressed a willingness to pay higher prices for adequate fuel availability rather than risk insufficient supply during critical planting and harvest seasons.
The fuel shortage in Bolivia’s Santa Cruz region is severely impacting soy farmers’ ability to harvest crops, posing a potential threat to the country’s agricultural economy. With limited diesel for farm machinery, significant food production losses are expected, which could disrupt various sectors of the food chain. The government’s response to mitigate the crisis through regulatory adjustments remains under scrutiny. Bolivian farmers are anxious to ensure stable fuel supply, even at higher prices, to safeguard their agricultural operations.
Original Source: money.usnews.com
