Peru: The government has given the green light to a new regulation aimed at promoting the industrialization and export of potatoes.

The government has approved the regulations for Law No. 31920, designed to promote the industrialization of potato cultivation with the aim of transforming this product into higher value-added goods. This initiative seeks to strengthen its competitiveness, generate higher incomes for local producers, and contribute to the country’s economic development.This measure was formalized through Supreme Decree No. 005-2026-MIDAGRI, published in the Legal Standards section of the Official Gazette El Peruano. The regulation consists of seven titles, seventeen articles, and three final supplementary provisions.The main objective of the regulation is to boost the potato-related agro-industry by promoting the production of derivatives for diverse markets, as well as their export. It also aims to strengthen production chains, diversify the economy, and reduce poverty in rural areas.The Ministry of Agrarian Development and Irrigation (Midagri) will lead its implementation, facilitating the commercial integration of the production chain and establishing specific goals for the industrialization of potato cultivation within the framework of the National Agro-industrial Competitiveness Plan (Compeagro). In addition, the National Institute of Agricultural Innovation (INIA) will participate, developing research and technology transfer programs, and the National Agrarian Health Service (Senasa) will be responsible for sanitary regulations and food safety during production and processing.Priority actions include transforming potatoes into higher value-added products, such as flakes, chips, instant mashed potatoes, starches, and other derivatives. The plan also envisions linking this production to agricultural export chains, culinary projects, and large-scale commercial operations.To support these objectives, the Ministry of Agriculture (Midagri) will promote pilot projects and industrialization plans through public calls for proposals that will facilitate co-financing for machinery acquisition and provide technical training to farmers. Similarly, the formation of cooperatives, rural consortia, and other associations will be promoted to facilitate access to markets and sources of financing.Regarding technical assistance, priority will be given to family farming organizations that wish to integrate into agro-industrial value chains. The regulations also promote the use of certified seeds and establish credit lines and guarantee funds for seed producers, with the aim of improving both the genetic and sanitary quality of the crop.A key aspect of the regulations is promoting access to financing. In this regard, the Development Finance Corporation (Cofide), in collaboration with the Ministry of Agriculture and Irrigation (Midagri), will be able to design medium- and long-term credit lines for industrialization-related projects. At the same time, the Ministry of Economy and Finance will evaluate alternatives such as tax incentives and guarantee mechanisms within the existing legal framework.Environmental sustainability is another fundamental pillar, promoting practices such as efficient water use, reduced agrochemical use, proper waste management, and the preservation of native potato varieties. Finally, campaigns are planned to encourage the consumption of potato products, and initiatives will be launched to explore and expand both national and international markets for this production chain.