The president of CERA, Enrique Mantilla, said that, "exports of pears and apples should not pay export duties because of the distressing situation faced by the sector that has been affected by the brutal fall in prices in the European market, especially in Russia, one of the main destinations for these fruits."
Mantilla felt the decision of the Ministry of Economy to grant a waiting period of 60 days for the payment of a 5 percent export duty of the FOB value plus interests, when the target market is the European Union and Russia, was a temporary solution.
"They give exporters 60 days instead of 15. It's a relief, but a patch policy. Fundamental solutions are needed because the export sector of pears and apples is going through a serious crisis since before the devaluation of the ruble; prices in the Russian market have fallen dramatically, but local costs have not gone down," he said.
The leader said the Russian market was very important to that activity, so the government should implement "countercyclical policies, starting with eliminating export duties to maintain regional economies that provide many jobs".
In this regard, he said, there are 70,000 jobs at risk and people are living a distressing situation in the town of Cipolletti, Rio Negro. Mantilla also called the pear and apple industry to help them with larger loans.
The CERA stated that the devaluations carried out from June 2014 against the dollar were 17.3 per cent for the Euro and 49.2 percent for the ruble.
"We must act urgently to secure the lifting of the harvest, through credit assistance with terms and conditions that are consistent with the sector's economic and financial situation," he said.
The CERA also said the economic equation through the cost/revenue matrix should be improved so that the sector can increase its competitiveness and that the fruit may be marketed and have a profit margin.
Source: lt10digital.com.ar