Ivan Condori reports for La Razon, photo is from Angel Illanes:

In the new harvest this year, which starts in May, it is expected to produce about 4.53 million tons (t) of sugar cane, which represents a growth of 20% over the 2011 harvest that reached 3.78 million. Sugar cane producers (Cañeros) say that upward volume is subject to weather conditions.

There is an extension of sugar cane plantations in the eastern region of about 126 thousand hectares (ha), of which 25,200 were renewed in the last campaign, which means 20%.

Sugar production data

Demand: Domestic consumption of the product in the country currently reaches 7.5 million quintals.

Volume: The five sugar mills reported that sugar production currently borders the 10.1 million quintals.

Sale: The Executive (central government) authorized the export of around of 650 thousand quintals of sugar. To date, there were granted permits by 22,600 t.

Low prices of rice and sugar Aline Quispe

The Government recognizes that prices of rice and sugar on the international market have declined, making it difficult to producers to export all their production. The Executive said that Peru offers the best prices.

The Deputy Minister of Rural development and land, Victor Hugo Vasquez, yesterday indicated that the reduction of exports of rice was due to the drop in the price of the product worldwide.

The Authority explained, for example, that in the country the price of rice per ton (t) is us $ 576, while on the stock exchange in the city of Rosario (Argentina) it is worth $ 475. “Now the best option to export the product price is therefore Peru (…).” “We understand that the prices are higher than other markets abroad”. On February 22, the President of the National Federation of cooperatives rice (Fenca), Gonzalo Vásquez, told La Razon that the preferential markets for Bolivian rice are Peru, Colombia, Venezuela and Chile.

However, he indicated that “the prices offered by Peru, with regard to which they offered in 2011, dropped, because they had a good yield of rice.” “That is why we are seeking preferential markets”. With regard to sugar, the Deputy Minister said that if the price of the sweetener “is falling, it is not so low, because the cost of production of a quintal of sugar is between Bs 100 and 105, and as we have registered, the cost in the market is above Bs 240”. The sugar mill of Bermejo already dropped the price of Bs 276 to 265.

http://www.la-razon.com/economia/Zafra-preve-alza-produccion-azucar_0_1566443371.html

This is just an indication of how sensitive the external markets are for our agricultural produce; the government should let the private sector (businesses and cooperatives) to seek their best possible market. Government should offer credit and tax incentives but in no way control how much gets to be exported or not, we do not want to become a Cuba, closing down sugar mills and barely producing after the long subsidy time they received from their produce from former USSR, another failed socialist venture…