Bolivia’s farming sector in Santa Cruz is grappling with a fuel shortage that jeopardizes crop harvesting. This crisis is largely due to reduced foreign currency reserves and local gas production. Farmers warn of potential debt accumulation and significant losses in food production if diesel supplies remain inadequate. The government is taking steps to facilitate fuel imports, including the use of cryptocurrency, amid rising pressures due to the crisis.
In Santa Cruz, Bolivia, farmers are facing significant challenges due to a pressing fuel shortage that is affecting their ability to harvest crops. This crisis is concerning for the nation, where agriculture plays a vital role in the economy. The lack of fuel is mainly attributed to a decline in foreign currency reserves and decreasing local gas production, which is reaching critical levels.
As the situation escalates, long lines at gas stations have become commonplace. Joel Eizaguirre, a soybean producer, expressed that without adequate fuel, farmers risk increasing their debt significantly. He indicated that the consequences would extend beyond individual producers, impacting the entire agricultural sector.
Jaime Fernando Hernandez, manager of the oilseed and wheat group ANAPO, warned that a shortage of diesel for machinery could result in the loss of substantial food production, including key staples like soy, corn, and sorghum. Such losses would subsequently disrupt the food supply chain, affecting the production of livestock and other agricultural products.
In response to the crisis, Bolivia’s government has initiated measures to alleviate the situation, allowing state energy company YPFB to use cryptocurrency for fuel imports. This effort is part of an attempt to stabilize the deteriorating conditions amid growing public pressure.
Eizaguirre noted that he would rather pay a higher price for fuel than face shortages. He highlighted the disparity between the parallel currency exchange rate and the controlled official rate, emphasizing the urgency of securing fuel for both current harvesting and the upcoming planting season.
The fuel shortage in Bolivia’s Santa Cruz region significantly threatens agricultural operations, potentially leading to severe food production declines. Farmers and officials are expressing urgent concerns about the repercussions of insufficient fuel on the economy and food supply chain. The government’s attempts to address the crisis, including import adjustments using cryptocurrency, highlight the pressing nature of the issue. Ultimately, the situation underscores the delicate balance between the country’s agricultural viability and economic stability amidst ongoing fuel and currency challenges.
Original Source: money.usnews.com
