MercoPress. South Atlantic News Agency

Drought will bring produce prices up in Paraguay

Paraguay's Economy Minister Carlos Fernández forecast a difficult 2025 given the drought affecting agricultural production and thus driving prices upward. In this scenario, he underlined the need for innovative policies and constant review of institutional work as the Government of President Santiago Peña aims to provide necessary resources for health, education, security, and social transfers while improving public spending.

In addition, the Agriculture Ministry highlighted the goal of increasing irrigation system production to ensure continuous agricultural output.

During a press conference with other cabinet members after a meeting with Peña, Fernández admitted that the drought would affect production at large and medium businesses, which would show in the price of products.

”On the part of the Ministry of Economy and Finance (MEF), we will continue working in a difficult year, from the economic point of view, due to the issue of drought, although it has not been as bad as in previous years this has a high impact, let's say, not only on large producers, but on medium-sized producers, and in terms of the consumer, it has its impact in terms of prices,“ he said.

”We have to bring innovative proposals with the purpose of reaching, let's say, a higher degree of satisfaction with the economy on the part of consumers or on the part of individuals,“ he further noted.

”We need new policies, to start with new strength and reevaluate what we have done and what we are going to do from now on,“ he also said while highlighting the importance ”not to rest on our laurels, especially because political, economic and social conditions change over the years and therefore, in a new situation we need new policies.“

”That is what the President asked us, to start with new forces,“ he also mentioned while assuring that the MEF would fund priority areas, such as health, education, security, and social transfers. ”We have the obligation to do more. That is why we are in office, otherwise, we should go home if we are not able to improve the welfare of the people,“ he reckoned. He also acknowledged that public spending must continue to improve and meet the demands of the citizens.

Meanwhile, Agriculture and Livestock Minister Carlos Giménez said the Government intends to have Paraguay have the largest amount of land with irrigation system ”so that we never again have plateau production, which is to produce at a certain time and we stop producing in several months and start importing again.”

Also this week, Paraguayan authorities met with Thailand’s Industry Minister Akanat Promphan to strengthen cooperation in industrial development. One of the main topics addressed was the potential for investments in the automotive industry, especially electric vehicles (Evs).

They also discussed the great potential of the food sector and the importance of promoting processing industries to add value to products and boost their export in both regions