Today, El Dia reports how the sugar cane industry is facing a “problem” due to governmental inefficiencies:
The sugar cane sector fears that the existing ban on sugar exports will prevent to generate liquidity and it will paralyze at least $ 70 million dollars; that is the 2.6 million quintals, after supplying the national market, during the 2011 harvest. Explained the leader of the Association of Sugarcane (ASOC), Ernesto Antelo, the sugar sector does not receive direct payment from the sale of the cane. There is a process called ‘maquiladoras,’ which means that with the delivery of one ton of cane to the mill, from the sugar produced, 57.20% belongs to that producer, with that sale, producers can continue with their sugar cane harvest.
“The producer goes to the bank, searching for warrant loans, which means a period of 180 days; this time, they are due late November and early December. If you do not have a way of how to sell [export] the surplus sugar, the producers will fail payments to the bank and will be forced to pay interest and a number of difficulties. The sector will not have liquidity, you can not clean your land, have to buy herbicides, so crop yields will be lower and there will be sugar shortage in the future “, said the cane producer. He also said that if there is no sugar been exported about $ 70 million will be paralyzed.
Current government needs to react faster than its normal pace… ban on sugar exports must be lifted, but not when the government decides, government needs to fulfill its main role: facilitating the [honest work not coca/cocaine related] work of Bolivian citizens and industries.
Otherwise, sugar cane producers will lose revenues, end up paying higher interest rates, there will be less of them producing next year… how hard is it to understand?
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