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Due to Central Bank restrictions, they warn that agrochemical companies could close

The Argentine Fertilizer and Agrochemical Industry Chamber (CIAFA) warned that companies that sell agrochemicals could close because they cannot pay overdue debts for raw materials after the Central Bank (BCRA) regulations.

It was after a survey made by the chamber among 25 of the 56 associated companies, which represent a total of 60% of the market by volume.

From the survey work, it emerged that 60% of the companies cannot access the payment of the debts incurred, which conditions the supply of the industrial sector. While 20% of the associated companies see their continuity compromised in the next 6 months.

“If the current BCRA restrictions are maintained, the local production of inputs for agriculture would be affected, with the consequent reduction in production lines, increased costs, loss of work and finally the supply for the thick season by these companies, “they alerted from the camera in a statement.

In this sense, the companies consulted remarked that if the current restrictions to pay foreign debts are released, there is still time to reverse this situation that may affect the supply of inputs for the next campaign.

It should be remembered that after Communication 7030 of the monetary authority, published on May 28, restricts access to dollars to importing companies to settle payments for imports.

“We understood that at that time we had to make a reasonable effort and sacrifice during the period that the debt payment negotiation process lasted. The Central Bank had difficulties due to the fall in reserves given the doubts that there were about how the debt negotiation was going to come out ”, began by explaining Federico Landgraf, Executive Director of the Chamber of Agricultural Health and Fertilizers (Casafe), which mainly groups together foreign phytosanitary companies.

“With the resolution, no more money could be transferred abroad than what had been committed to suppliers as of January. But the problem is that phytosanitary companies buy within 180 days and the purchases of inputs are not seasonal, so the bulk occurs in the second semester. We had asked him to run that date six months ago since the real import period was going to be included ”, explained Landgraf.

But now, after the Government agreed with the international creditors to pay the debt, the chamber agreed that “the conditions are already in place to normalize the operation.”

“As Argentina dodged the default and is on track in the international financial market, the operations of companies that made commitments between 2019 and 2020 should be normalized,” he conclu

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