The tractors arrive in Madrid: the farmers' disaster threatens to skyrocket meals costs within the grocery store much more | EUROtoday

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The disaster that the countryside goes via in our nation it threatens to skyrocket meals costs within the grocery store much more. The important calls for of the farmers, who face the third week of protests with a big focus this Wednesday in Madrid, go in the wrong way to the good thing about the ultimate shopper and put upward strain on inflation alongside the completely different hyperlinks of the chain.

This is what Javier Santacruz, an economist and researcher on the Foundation of the Spanish Institute of Analysts warns, warns that “the crisis in the countryside is going to cause a increase in food prices both at the national level and in imported ones”, since “the limitations on trade that farmers pose by demanding that the European Union demand the same phytosanitary, labor or environmental standards for imports, will skyrocket the prices of imports and, in consequently, the national product”.

Agricultural skilled organizations are demanding a tightening of the Chain Law, specifically, of the provisions that prohibit the sale at a loss. “This has a directly inflationary consequence, since the increase in costs at source translates into a rise in final prices, causing a spiral“explains Santacruz. It appears apparent, due to this fact, that this declare that seeks to ensure truthful costs to producers doesn’t favor the buyer's pocket, who finally ends up paying extra for the buying basket as a direct consequence.

The Minister of Agriculture, Luis Planas, has dedicated to selling within the EU a collection of modifications within the Common Agricultural Policy (CAP) to “reduce the administrative burdens” of farmers and ranchers and make sure obligations extra versatile. Within the framework of the open negotiations right here in Spain, he’s working with skilled organizations on a bundle of measures that, in Santacruz's opinion, “represent a letter to the Three Wise Men.”

The economist refers, for instance, to the elimination of necessary fallows or mirror clauses in issues of overseas commerce. “They are heavenly music,” he says relating to the introduction of those equal circumstances within the commerce agreements that the EU negotiates with third international locations. The software of obligation, In his opinion, “it is not the solution either, because they transfer the problem to the markets that do function and to other products and services where third countries will retaliate,” he warns.

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In Santacruz's opinion, the “only positive measure” of the bundle proposed by Planas is the creation of the State Agency for Food Information and Control. “Giving this Agency more powers is essential, more on the information side than on the control side,” he says. In this sense, it’s dedicated to bettering transparency within the markets and even to the configuration of “a common agri-food market, standardizing prices between markets, markets and wholesalers, with a record of operations at a single price so that farmers stop depend on wholesalers who seek to increase their reduced profit margin.

In the Notes on the reform of the food chain law published this Monday by Faith researcher Ángel de la Fuente considers it “most unlikely” that the clauses prohibiting sales at a loss can be applied effectively and warns that “if it have been doable to take action there could be damaging penalties within the medium and long run for the effectivity of the sector”.

According to this economist, “the one doable method to implement one thing much like what the regulation seeks is thru the institution of value flooring within the outdated manner, which may solely be sustained by public buy of the corresponding surpluses“. The conclusion is that “it doesn’t appear that this facet of the latest reform of the regulation has opened a novel or promising method to mitigate the issues of the sector, or that its reinforcement is advisable.”

The Government aspires to reach an agreement with the representative associations of the sector to calm spirits and quell the protests as soon as possible. Meanwhile, the countryside keeps its pulse in the streets. This same Wednesday there is a massive tractor rally called in Madrid by the Union of Unions. On Monday the 26th, another day of protests will be held by Asaja, Coag and UPA.