Agricultural Sector Faces Inflationary Pressures
The agricultural sector in Aguascalientes is experiencing inflationary pressures due to a combination of climatic factors and rising fuel and fertilizer prices, according to Dafne Viramontes, President of the Aguascalientes Economists’ College. She highlighted these concerns during a press conference.
Beneficial Climatic Effects
Viramontes noted that recent rains have benefited crops dependent on wet seasons and recharged groundwater aquifers, crucial for irrigation agriculture in Aguascalientes. Crops like corn and sorgum have shown better development, along with promising prospects for short-cycle vegetables.
Missed Opportunities Due to Insufficient Infrastructure
Despite abundant recent rains, Aguascalientes cannot fully capitalize on this resource due to inadequate water infrastructure, Viramontes warned. The state lacks significant systems for capturing and directing rainfall into surface water bodies.
“The number of surface water sources in Aguascalientes is quite limited, and we heavily rely on groundwater. There are no substantial mechanisms to channel rainfall into these surface water bodies,” she explained, representing a lost opportunity for the agricultural sector and other productive areas.
Contrasting Productive Sector Needs
This situation contrasts with Aguascalientes’ productive sectors, including manufacturing and automotive industries, which heavily depend on water usage. Viramontes pointed to the positive example of the District 01 Irrigation Project, aiming to better utilize surface water bodies. However, she emphasized the need for more such initiatives.
“Our economy does not significantly rely on the local agricultural sector, which accounts for only 3% of economic activity. However, we are highly sensitive to what happens in the producing regions that supply us, such as Jalisco and Michoacán.”
Price Fluctuations in Key Agricultural Products
By May, according to the National Consumer Price Index (INPC) by the National Institute of Statistics and Geography (Inegi), avocado prices averaged around 100 pesos per kilogram, with a 38.4% increase. Chile serrano and tomatoes saw price hikes of 15.3% and 23.6%, respectively. In contrast, onions and beans experienced decreases of 45.3% and 3.1%, respectively.
“These products are highly volatile and affected by various factors, including climatic and logistical issues in their origin states. For instance, extortion against producers and transporters in Michoacán often hinders their ability to move goods,” Viramontes explained.
“Moreover, when we become victims of hurricane or tropical storm aftermaths in neighboring states, crops can become unusable, immediately impacting our markets.”
Uncertain International Context and Rising Energy Costs
Adding to these challenges is the uncertain international context, with ongoing geopolitical tensions in oil-producing regions like the Middle East. Aguascalientes, along with the rest of the country, remains exposed to potential fluctuations in fuel and natural gas-derived fertilizer prices, which have already increased by 15.6% annually.
Furthermore, the local manufacturing sector, a cornerstone of the state’s economy, would face increased production costs due to higher electricity and natural gas tariffs. These prices are linked to international hydrocarbon markets, so Viramontes advised monitoring these fluctuations. Any sudden changes could impact the basic consumer basket within weeks.
Key Questions and Answers
- What challenges is Aguascalientes’ agricultural sector facing? The sector faces inflationary pressures due to climatic factors and rising fuel and fertilizer prices.
- How are recent rains affecting agriculture in Aguascalientes? Recent rains have benefited wet-season crops and recharged groundwater aquifers, but the state lacks infrastructure to fully utilize this resource.
- What are the price trends for key agricultural products in Aguascalientes? Prices for avocados, chile serrano, and tomatoes have increased, while onions and beans have experienced decreases.
- What external factors are impacting Aguascalientes’ productive sectors? Extortion against producers and transporters in neighboring states, as well as hurricane or tropical storm aftermaths, pose challenges.
- What international and domestic factors are causing energy cost increases? Geopolitical tensions in oil-producing regions and rising natural gas prices linked to international hydrocarbon markets are driving up energy costs.
