The Executive Branch is allocating SGD 1,070 million for the development of agricultural infrastructure.

Ministry of Economy and Finance (IEF) reported that it had transferred more than SGD 1,070 million to finance the maintenance and improvement of irrigation infrastructure, as well as other actions that allow the agricultural sector to quickly resume operation.

This measure, which is part of the Con Punche Peru plan, will provide strong support to this sector, which has been hit by the pandemic, the international rise in prices for production factors and social protests of the past two months.

Economy and Finance Minister Alex Alonso Contreras said this was one of the highest levels of resources allocated to the agricultural sector to help not only rebuild it, but also improve efficiency through infrastructure development and productivity. , with the goal of achieving sustainable growth that creates jobs and raises farmers’ incomes.

These measures, MEF explained, have a quick effect and will increase the competitiveness of the sector that generates the most jobs in Peru. In addition, actions will be promoted that will improve and make water use more efficient, and productive development tools will be promoted to bring about important changes in the conditions of the sector.

“The country needs concrete action, a public policy designed with the interests of citizens in mind, and this is what we are striving for with this group of measures,” said Minister Contreras.

According to the Supreme Decree No. 024-2023-EF, the resources will be used to finance the maintenance of irrigation infrastructure, the development of a portfolio of urgent investments for the restoration of canals and ponds, as well as to finance business plans and productive reconversions. .

In addition, the regulation includes resources for the Fund for the Financial Integration of Small Agricultural Producers (FIFPPA), the issuance of mandatory environmental opinions, the tightening of safety and quality standards for the competitiveness of agriculture, forestry and wildlife in the Peruvian Amazon, as well as the implementation of mobile markets “From farm to the pot.”

Minister Contreras explained that this measure of attention to the agricultural sector is in line with the urgency of implementing investment mechanisms that accelerate and increase productivity, achieve greater water use through improved irrigation systems, and restore and optimize agricultural and production activities.

The resources that the IEF will transfer will benefit the specifications of the Ministry of Agricultural Development and Irrigation (MIDAGRI), the National Water Resources Administration (ANA), the National Agricultural Health Service (SENASA), and the National Forestry and Wildlife Service. (SERFOR), credited to the Contingency Reserve of the Ministry of Economy and Finance.

Funded interventions

“These resources will be used for the maintenance and cleaning of irrigation infrastructure, including cleaning of 63,784 km of canals and irrigation drains. This activity will require more than 3 million working days,” he explained. economy and finance in a statement.

The MEF also reported that the development and implementation of a portfolio of small investments and fast execution is progressing, aimed at rehabilitating 1,420 kilometers of canals in irrigation systems, as well as developing 645 ponds, which are natural structures. it is possible to reserve water resources on productive irrigation areas. It is estimated that this investment portfolio will take over 2.6 million business days to complete.

In the same way, it is planned to finance 843 business plans for more than 45 production chains, among which stand out plans focused on coffee, milk, cocoa, potatoes, guinea pigs, as well as 20 reconversion production plans that allow products They have lost competitiveness. In total, it is estimated that this will benefit 30,290 agricultural producers across the country.

Similarly, resources are being made available to the Small Agricultural Producer Financial Inclusion Facility (FIFPPA), which provides incentives to lower the interest rate, enabling more than 35,000 loans to be placed for farmers with up to 10 hectares of land. National level.

“On the other hand, in order to strengthen control over agricultural and forestry activities, Midagri and Serfor finance the strengthening of environmental protection measures. In addition, the strengthening of security actions such as bird flu and swine fever and quality standards are being promoted to achieve greater competitiveness in agriculture,” the minister’s portfolio reads.

He added that it is expected to fund activities related to forestry and wildlife in the Peruvian Amazon and support the organization of 640 Farm to Pot traveling markets at the national level.