ECUADORIAN SHRIMP FARMERS HIT OUT OVER LACK OF CONTROL OVER FUEL SUBSIDIES

Ecuadorian shrimp farmers hit out over lack of control over fuel subsidies. Several weeks ago, the National Chamber of Aquaculture (CNA) denounced the alarming lack of control in the commercialisation of subsidised fuels in the country to the Minister of Energy and Mines, Fernando Santos; and the former Minister of Production, Foreign Trade, Investment and Fisheries, Julio José Prado.

The CNA asked the authorities to carry out an exhaustive analysis of the figures of Petroecuador EP, with the objective of sanctioning the illegal supply of subsidized fuels; which not only negatively affects the shrimp industry, but also causes considerable economic losses to the State.

However, more than a month and a half after this complaint, the government decided to implement a quota system at 108 gas stations in the country to control unusual increases in the sale of premium diesel. According to the Minister of Energy Mines, Fernando Santos, these increases reached a staggering 400% and 500% in the first half of 2023 compared to the previous year.

For his part, the Executive President of the National Aquaculture Chamber, José Antonio Camposano, expressed his dissatisfaction with this measure, arguing that it is insufficient to adequately address the problem. On his Twitter account, Camposano stated:

“The CNA warned last year what would happen. Punishing the formal activity that meets all the requirements constantly affects our ability to compete.”

It is important to remember that, in 2022, the Government announced by Decree the elimination of the differentiated price of diesel for shrimp farmers that have more than 30 productive hectares, which caused an increase of more than 16 cents in the cost of production per pound. of shrimp, directly impacting the competitiveness of the sector. The measure was harshly criticised by the CNA as it was not agreed upon with the shrimp sector, which it proposed on several occasions and a gradual schedule for the withdrawal of the subsidy tied to the adoption of other clean energies such as electricity.

“Without these effective controls, the formal players in the shrimp chain are once again being punished, while the informal sector illegally benefits from subsidies.” Camposano highlighted.

The National Chamber of Aquaculture urgently calls on the authorities to implement more effective and equitable measures that protect the formal industry and ensure the proper use of subsidised resources. The Internal Revenue Service (SRI) is urged to carry out controls together with the Hydrocarbons Regulation and Control Agency (ARCH) to verify fuel purchase invoices and determine who, unscrupulously, benefits from a subsidy that does not correspond to them .

The union entity reaffirms its commitment to the sustainable development of aquaculture and its contribution to the national economy, and will continue to work towards a fair and equitable environment for all stakeholders in the sector.

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