Bolivia faces a critical fuel shortage affecting farmers in Santa Cruz, risking agricultural productivity. The government is pressured to stabilize fuel prices amid declining currency reserves. Farmers express concern about mounting debts and potential food production losses, as the state considers measures to facilitate fuel imports.
In Bolivia’s agricultural heartland of Santa Cruz, an escalating fuel shortage is critically impacting farmers’ ability to harvest their crops. This situation poses a significant threat to the country’s economy, particularly as agriculture is a vital sector. The shortage is primarily due to declining foreign currency reserves and diminishing local gas production, resulting in long queues at gas stations. The government, led by President Luis Arce, faces mounting pressure to manage fuel prices through subsidies.
Joel Eizaguirre, a soybean farmer in Santa Cruz, warns that the lack of fuel will deepen producers’ debts, forcing them to make difficult choices. This could have widespread consequences, affecting not just farmers but the entire agricultural community. Jaime Fernando Hernandez, head of the oilseed and wheat association ANAPO, emphasizes that insufficient diesel for farm machinery could lead to significant food losses, particularly in soy, corn, and sorghum production, which would disrupt the food chain further.
To combat the dual crises of fuel and dollar shortages, Bolivia’s government is attempting to facilitate imports. Measures include allowing state energy firm YPFB to utilize cryptocurrency for fuel purchases and payments. Eizaguirre expresses a preference for higher fuel costs if it guarantees availability, highlighting the severe implications of fuel scarcity on timely grain harvests and upcoming planting seasons.
While officials are striving to ease the immediate impacts of the fuel crisis, the ongoing challenges of currency and energy shortages pose long-term risks to Bolivia’s agriculture sector and food security.
The fuel shortage in Bolivia significantly threatens the agricultural sector, particularly in Santa Cruz, where farmers face impending harvest challenges. With decreasing local gas production and foreign reserves, the government’s attempts to stabilize prices through subsidies are put to the test. If not resolved, this crisis could have disastrous implications for food production and economic stability, highlighting the importance of strategic interventions and support for farmers.
Original Source: money.usnews.com
