Around 1,500 tons of sugar are being imported by the government from Brazil and Colombia for the state-owned company “Insumos Bolivia” (Bolivia Inputs). Produce is in Arica, Chile; waiting to be transported to Bolivia. Brazilian sugar transport results more expensive this way (around the continent), rather than coming through Santa Cruz, directly from Brazil. In comparison, Colombian sugar results cheaper in transport but costlier for the logistical bureaucracy. In any case, the Bolivian government pays for those import costs… in the end, we the tax payers end up paying for this import. This load has been for over a week in the docks of Arica, waiting for the state company to go for them, more time it takes “Insumos Bolivia”, more time we will have to pay for storage.
Sugar price in comparison to neighboring countries will continue to be lower, with a high probability of continued smuggling to those markets: a kilogram in Argentina, Brazil is worth Bs.7.70; in Peru Bs6.60.
Current annual national consumption is 7.5 million “quintales – qq” (a ton equals 22qq). National production is estimated at 9.5 million qq.
There is a problem in the sugar cane factory of Bermejo, Tarija. So, the government has authorized that area’s local producers by Supreme Decree, to export their sugar cane to Argentina that cannot be processed in Bermejo (up to 60 thousand tons of sugar cane). Government also said that will lift the ban on sugar exports, provided national market is covered. The government has authorized public bid for the construction of a sugar mill in San Buenaventura, La Paz; with an estimated capacity to annually process 2.16 sugar cane million tons.
Not so long ago and because of sugar shortfall in the markets, current president accused the private sector for being inefficient; pointed out them as the origin for the shortage problems. Last February, the government extended the zero-import-tax for sugar exports until August 31, 2011 (Supreme Decree 770).
Today’s El Dia editorial questions the decision to allow Tarija small producers to export their sugar cane; they will benefit from preferential prices, while the rest of the national sugar cane producers are banned to export and are forced to accept a fixed price, as set up by the government.
http://eldia.com.bo/index.php?c=&articulo=La-dictadura&cat=363&pla=3&id_articulo=68970
Private sector denies guilt for sugar shortage. The National Chamber of Commerce, acknowledged the sugar problem at the distribution channels but said there is no intend to boycott or any other situation for the government to be susceptible for; in reply for the president’s accusations.
Rural Development vice-minister, Victor Hugo Vasquez said yesterday that sugar is illegally being taken to Peru. He reflected on the inhabitants of neighboring towns, to not engage in the transport of sugar across the border. He also assured that ill-intended sellers, especially in La Paz, who are hiding the product to force price increases in the local market; and to illegally take it outside the country.
http://www.paginasiete.bo/2011-07-22/Economia/Destacados/10000003223.aspx
Déjà vu? it happened last year… people were forced to stand in long lines to purchase sugar by the kilogram, like in hyperinflation times; state owned companies failed at the sugar trade, with some corruption of public officials along the chain; many sugar cane producers and some sugar investors shifted to other industries; contraband increased; and subsidized sugar triggered an increase in our national debt. Nothing sweet came out of that, and chances are this time will be no different… we seem to not being able to assimilate our mistakes nor being able to correct them.
Bolivian Thoughts | Pensamientos Bolivianos (Bilingual/Bilingüe) 