Bolivia’s Agricultural Sector Faces Crisis Amid Fuel Shortage
Bolivia faces a severe fuel shortage impacting soybean farmers in Santa Cruz, hindering harvests and threatening food production. This crisis arises from dwindling foreign currency reserves and local gas production. The government is under pressure to find solutions, including using cryptocurrency for fuel purchases, while farmers express willingness to pay higher prices for necessary fuel supplies.
In Bolivia’s agricultural region of Santa Cruz, soy farmers are increasingly concerned as a significant fuel shortage impedes their harvest capabilities. This situation poses a considerable threat to Bolivia’s economy, wherein agriculture has become a vital sector. The fuel crisis has emerged from declining foreign currency reserves and reduced local gas production, reaching alarming levels, unsettling President Luis Arce’s administration, which has implemented price caps through subsidies.
Joel Eizaguirre, a soybean producer, expressed that without adequate fuel, farmers will incur deeper debts, which could prompt them to make alternative choices that would adversely affect the agricultural sector. Jaime Fernando Hernandez, manager of the ANAPO oilseed and wheat group, warned that insufficient diesel for farming equipment could lead to substantial losses in food production, including crucial staples such as soy, corn, and sorghum. This scarcity may also disrupt livestock and poultry production.
As the government faces increasing pressure from the dual crises of currency and fuel shortages, measures have been taken to facilitate imports. This includes enabling the state energy entity YPFB to utilize cryptocurrency for fuel transactions. Eizaguirre shared his willingness to pay a higher fuel price over facing a shortage, as he emphasized:
“Personally, I’d rather have fuel cost 11 bolivianos than not have enough fuel to harvest our grain, or not be able to plant during this approaching winter.”
The ongoing fuel shortage in Bolivia significantly threatens the agricultural sector, potentially leading to food production losses and deeper debts for farmers. The government’s initiatives to mitigate the crisis, including facilitating fuel imports, highlight the urgency of the situation. Farmers express a preference for higher fuel costs rather than inadequate supply, emphasizing the critical need for fuel to sustain agricultural operations.
Original Source: money.usnews.com
