Today January 31, 2011 will go down in history as a bitter day and anger of the people of Bolivia, as the government of President Evo Morales rose for the second time this month the price of sugar.
On Thursday 14 January, the price of sugar in stores EMAPA (state enterprise) was of 4.30 bolivianos a kilo, and Bolivian rose to 5.30, an increase of 23%. Today January 31, 2011, the price went from 5.30 to 7.50 per kilo Bolivian bolivianos, a further increase of 41%, meaning that in only 16 days, the price shot of 4.30 bolivianos Bolivian kilo to 7.50 74% .
While the private sector sells to 8 bolivianos a kilo, 86% more payable by the people of Bolivia.
government's justification was the same on 14 and 31 January, to "avoid speculation." So the people of Bolivia must pay more for sugar because of the misguided economic policies and productive of President Evo Morales.
policy control prices, banning exports and state marketing of commodities in the basket has given these results: Food shortages and rising commodity prices.
However, the people of Bolivia must remember that the country has been an exporter of sugar for many years and produce more sugar than we consume, then the questions are: Why is there sugar in the market internal, why raise the price and why the people are condemned to long queues to purchase this product?
To answer these questions, simply see Figure 1 for production, consumption, export and smuggling legal. (Source: Prepared based on government statements and the sugar sector, Page Seven, January 18, 2011).
Bolivia requires about 7.5 million quintals a year and 2009 was 11.5 million bushels and 2010 that production fell 9 million bushels. Legal and official exports were 0.5 billion for the year 2009, while the 2010 was only 0.2 million quintals. Therefore, the contraband was about 3.5 million quintals in 2009, an amount that was maintained or increased in 2010. The effect was a decrease in sugar consumption in the population.
state control did not solve the problem, however it worse.
The government of President Evo Morales against the truth in saying that high international sugar prices are causing the shortage of the product. Just see Figure 2 international sugar prices from 2007 to 2010, prices of 2009 were almost the same level of 2010 and this year there was no shortage of sugar in Bolivia. (Source: Food Outlook November 2010 the United Nations Organization for Agriculture and Food)
60% of the population lives in poverty, especially children and youth. Tomorrow, February 1 classes begin in schools in Bolivia, ensured that from tomorrow, many children go to school without their main source of energy for the poor: sugar.
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