Colombia: Government announces measures to address price crisis in the paper sector

At the meeting, a set of measures aimed at mitigating the effects of the seasonal price decline facing the sector was presented.  The Minister of Agriculture and Rural Development, Martha Carvajalino, announced that this situation "puts the income of many small producers at risk" and  affects nearly 90,000 families who currently depend on the cultivation of this tuber . 

Among the announced actions are a subsidized financing scheme, an economic recovery line, portfolio normalization, and incentives for rural capitalization. According to Carvajalino,  these measures will be supported by Finagro and Banco Agrario, with resources exceeding $3 billion.  Another strategy is the direct acquisition of seasonal surpluses, a mechanism that has already been used with products such as milk. This time,  the government will allocate nearly $20 billion for the direct purchase of potatoes , with the goal of redirecting these products to regions of the country where high levels of food insecurity have been identified. 

More than 90,000 potato-growing families are at risk due to the seasonal drop in prices, according to Agriculture Minister Martha Carvajalino. Courtesy

Carvajalino also reported that the plan includes coordinated actions with the processing industry and wholesale supply centers,  which will be addressed in meetings scheduled for the coming weeks.  " We have presented measures with the industry, a meeting that we will hold during the course of the week ," he explained. Regarding the supply centers, he announced that a specific meeting will be held on August 15 to coordinate efforts with these market players. As part of the institutional follow-up,  the Expanded National Potato Council will be convened to maintain ongoing monitoring of the progress of the measures adopted . The Public Ministry also signed the action plan as guarantor, along with the National Government and the territorial entities involved. 

A subsidized financing and reactivation line for more than $3 billion was activated with support from Finagro and Banco Agrario. Courtesy

The Minister called on citizens to support national production. " Today we also want to tell the country that we must, in an act of solidarity with all Colombian potato producers, embrace them and consume national potatoes ," she noted. This set of initiatives is part of a context of oversupply that has generated a significant drop in potato prices in different areas of the country, a situation that primarily affects small and medium-sized producers in departments such as  Boyacá, Cundinamarca, Nariño, Cauca, Santander, and Norte de Santander.  The Government insists that these measures seek not only to respond immediately to the situation, but also to advance income stabilization mechanisms for producers,  as well as to ensure food supplies in the areas with the greatest food vulnerability . 

DIANA K. RODRÍGUEZ T. Portfolio Journalist