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Rainy state of emergency: what can provoke an increase in product prices?

Pedro Grados Smith is director of the economics program at the University of Lima. | Fountain: PTR

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Economic Career Director University of LimaPedro Grados Smith, commented on the effects of intense rains and floods that have occurred in different regions of Peru. Given the assessment of rising prices for lemon and rice, the economist pointed out that the severity of the situation will depend on whether the infrastructure system is affected.

“(They will rise in price) because lemon and rice are mainly produced in the north. When you arrive in the Chiclayo or Lambaeque area you have the rice growing areas and on the other hand you have the rice from San Martin. All this is leaving through the northern zone as less supplies reach Lima and that some of the production is even damaged, which is why we suffered, ”he said in Air Rotary.

“Everything will depend on whether the rains affect the infrastructure systemBecause there are two effects here: the damage they can cause to the agricultural product itself, the crop. And, if the harvest is possible, transport the lemon from these areas to the areas with the highest demand, namely Lima,” he added.

“It’s not just about recovery, it’s also about prevention”

At another point, Smith degrees mentioned the program “Reconstruction with changes”, who felt that while he focused on recovery, he should consider prevention. He also recalled that the sectors of agriculture and agro-export will suffer the most.

“In the short term, the program “Restore with Changes” improved because it was rebuilt, but it’s not just about that, it’s also about preventing. For example, in case of floods, special canals are built, but they are not maintained. Or the bridge is being rebuilt under the same conditions as before the problem, when you need to rebuild this bridge, prepared for the worst thing in 100 years,” he said.

“(The sectors most affected) agriculture, obviously, and agro-export.because it affects the coast. I think 3,000 hectares were affected in Piura. This affects many export commodities. Let’s remember that Piura is an important agro-export area, along with Ikoy and the north in general. And, on the other hand, also everything that is tourism in the north. We are already close to Easter and therefore it is not so pleasant, if the rains continue, to go north,” he concluded.


Source: RPP

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