August 17, 2007
Bolivia bans wheat export; ends beef tariff as prices soar
Bolivia froze all wheat exports and eliminated the import tax on beef to create a state company to support production of basic foodstuffs under a series of presidential decrees issued late Wednesday (August 15).
The measures come amid shortages and rising food prices. The administration of President Evo Morales issued the decrees "to fight and end speculation, price gouging, the lack of transparency and contraband" in a number of basic food products, according to state news agency ABI.
The wheat export ban comes amid accusations that subsidized local wheat and wheat imports are being smuggled across the border to Peru to take advantage of the price differential.
The government "temporarily suspends the export of wheat flour, wheat and animal and/or vegetable butter, whether these products have been imported by the state, by private agents or produced locally," the decree states.
The decree also prohibits selling bread at prices over those established by municipalities or hoarding wheat flour.
Bolivia's government is seeking to purchase 100,000 tonnes of wheat flour from Argentina this year. The first shipment arrived earlier this week, according to ABI.
The import tax on beef was also eliminated to stem rising beef prices despite an outbreak of foot-and-mouth disease in January, which shut down exports.
"The government is facilitating the importation of meat by the private sector," Agricultural and Rural Development Minister Susana Rivero said, according to ABI.
The government also set aside US$10 million to stimulate beef production by small- and medium-scale producers in the east of the country.
In addition, Morales is creating a state-run Food Production and Support Company, or Emapa. The company will receive up to 192 million Bolivianos (US$25 million) to "support agricultural production, contribute to the stability of agricultural markets and help farmers commercialize their goods," ABI said.
