mkn3347
12.07.2021 •
Social Studies
The domestic price (of wheat) tends to be the export price minus the withholdings. In other words, export duties generate an improvement in the prices of flour and its derivatives in the domestic market.It has no other objective, so the one who came up with the fantastic idea of reducing withholdings on wheat, explain how to do so that this does not translate to the price of bread. With these words, the Minister of Economy, Axel Kicillof, criticized the legislative project of the deputy Sergio Massa to eliminate the withholdings on wheat.The leader of the Renewing Front (RF) presented to the leaders of the Mesa de Enlace an initiative to bring these withholdings to zero, without distinguishing between large and small producers.
"If the withholdings on wheat are eliminated, and therefore more wheat is sown, there will be more production and exports, and the price of flour and bread will be cheaper," said Massa in the presence of all the leaders of the Mesa de Link during a meeting held last Saturday, together with the main referents of the Renewing Front.
According to a study by the National and Popular Agrarian Current (Canpo), in 2012 11.5 million tons of wheat were exported. In 2011 there were 8.4 million, while in 2010 4.04 million were sold abroad and another 5.1 million in 2009. During the year of the agricultural conflict, 8.7 million tons were exported. In other words, production and exports were growing - despite some setbacks - beyond the level of withholdings and the marketing system questioned by the ruralistas of the Mesa de Enlace.
Even the growth or decline in the area planted does not imply that there is an increase or decrease in production. In the 1969-1970 campaign, the implanted area was 6.2 million hectares, with a production of 7 million tons. In the period 2011-2012, with an implanted area of 4.6 million hectares, 14.5 million tons were produced. This explains the improvements due to technology, but also the shift towards other crops.
"The best way to reduce the impact of withholdings is by adding value to production or differentiating products ... The crops with the highest added value are those with a lower percentage of withholdings, since while wheat has 23 percent , those of flour are 13 percent and bakery products are 5 percent ", explained Carlos Casamiquela, Minister of Agriculture.
A) What would be the position of a liberal in front of the measures proposed by the deputy? and what would he say in front of the government's proposals?
b) What would your opinion be if you were a owner of a wheat business?
c) What is your position, instead, as a consumer?
d) Who are the beneficiaries of each of the notes?
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