MercoPress. South Atlantic News Agency

Argentine government makes a small gesture towards farmers’ groups

Minister of Economy, Amado Boudou, a rising star in Cristina’s cabinet?

Argentina decreed the dissolution of the controversial ONCCA, (Office for the commercial control of agriculture produce) which was directly involved in market regulation and distribution of subsidies and as such caused much irritation and criticism particularly from farmers’ organizations.

According to decree 192/2011 signed by President Cristina Fernandez and published in the Official Gazette, the autonomous ONCCA will be replaced by an interdisciplinary entity for the development and promotion of subsidies but under the powers of the Economy Ministry, which will be made up of experienced persons from that sector.

Those who will be involved with the new entity will promote “the defence of production, along with stimulating activity, protecting the right to nutrition and the compensation of prices with subsidies” says the decree which also underlines the need for “a more specific and separate expertise”.

“It is not entirely convenient to concentrate duties that imply so many activities linked to the agriculture sector, it all its phases, under the same authority”, adds the decree.

The move comes amid growing influence of Economy Minister Amado Boudou in the cabinet and in Cristina Fernández de Kirchner's preferences.

The new entity Unite for the Coordination and Evaluation of Domestic Consumption Subsidies will have as “president the Minister of Economy (Amado Boudou) and as acting vice-presidents the Ministers of Agriculture, Livestock and Fisheries (Julian Dominguez) and of Industry (Debora Giorgi), and will act according to the matter and field of competence”.

It also includes other low ranking officials including the controversial Guillermo Moreno, Interior Commerce Secretary.

“Creating this entity means not only a change of name but a conceptual change regarding the government’s policies in the farming sector” said Minister Amado who added that the new Subsidy Coordination Unit will work on “assuring the domestic supply, improving the offer of farm goods and boosting a balanced development of the sector”.

The first reactions from the farming sector were of surprise but also of distrust.

Mario Llambías, head of one of several farmers’ organizations admitted he was “surprised” by the decree that ordered the dissolution of the ONCCA farming control agency but he was “more concerned than before.”

He added that the measure is “a change in leadership, not in policy”. Llambías insisted that the organization ‘and most probably its successor’ only existed to serve the “political and economic interests of the government”.

ONCCA was created in 1996 by then President Carlos Menem but really became notorious during the Kirchners’ period when it begun distributing massive subsidies and with the implementation of the Export Operations Register, regulating all farm sales overseas.

ONCCA was one of several points questioned by Argentine farmers during the long 2008 conflict with the government since it was blamed for restricting grain, oilseed, dairy and beef exports and worked following “subjective and political” criteria.