Peru: The government plans to export potatoes as a solution to the oversupply
The Minister of Agriculture and Irrigation, Jose Arista, said that exporting potatoes could help solve the oversupply of local potato production that was harming small farmers.
"What we need to do is increase our share in the world market. The potato has a cyclical price that is determined by the domestic market’s price and when this tuber is exported producers will be able to sell 10, 20 and more crops to the domestic and foreign markets," he said.
He also said that the actions taken by the sector aimed at solving the problems that potato producers have by expanding the market, for example by selling the tuber at fairs at the headquarters of the Ministry of Agriculture and Irrigation (Minagri), and by supporting the Regional governments.
Two weeks ago, the Official Gazette El Peruano published the Emergency Decree (DU) No. 001-2018 that empowered the Regional Governments (GORES) of Apurimac, Ayacucho, Huancavelica, Junin, and Huanuco to buy potatoes for up to one and a half million soles to combat the surplus of white potatoes.
The decree stated that each Regional Government may contract with producers and organizations "the acquisition of white potatoes to contribute in the attention of social and/or assistance programs conducted through public and / or private entities without profit."