Adex, the Exporters Association, said it was necessary to extend the Agricultural Promotion Act -Nº27360, which will be in force until December 31, 2021, by 20 years because it didn't last long enough to undertake investment in the sector
"Not extending this norm would have a significant impact on national agriculture that would result in increased informality and poverty in the sector. It would discourage private investment in areas related to technology and job creation," said Eduardo Amorrortu, the president of Adex.
He said that the implementation of the Agricultural Promotion Act had allowed promoting the formalization of employment and reducing poverty, as well as modernizing agricultural production units and boosting agricultural exports. Currently 255,000 agricultural workers have insurance.
He also said that, 21 years ago, agricultural exports only accounted for 18.6% of non-traditional exports and that they currently account for 40% of them. In the same period, agricultural exports went from 471 million dollars to 5,093 million in 2015, i.e. 11 times more.
He added that other obstacles faced by agricultural exporters were the investment gap in infrastructure, the shortage of water resources, the limited ability to certify compliance with technical requirements to access markets, the poor tax administration and its arbitrary control, and the delayed exchange rate.
Source: elcomercio.pe