Recently, food prices in the Paraguayan agricultural market have risen sharply, escalating into a national crisis. According to data from the Ministry of Agriculture and Livestock (MAG), key agricultural product prices have skyrocketed between February and March, with lettuce up by 259%, tomatoes by 46%, potatoes by 158%, peppers by 107%, and onions by 23%. Essential fruit prices such as bananas and pineapples have also risen by 53% and 36%, respectively.
These price increases are based on wholesale market prices, and final consumer prices are likely to be even higher due to transportation, storage, margins, and taxes. Industry insiders attribute the primary cause to decreased production due to record-breaking heatwaves.
The price hikes are directly impacting the public's diet. In particular, low-income families are struggling to purchase groceries, leading to nutritional imbalances. According to official data, the chronic malnutrition rate among children under 5 reached a peak of 13% in 2022, and the acute malnutrition rate also hit 6.3%, the highest in recent years.
The country's lack of support for agricultural production is exacerbating these issues. Over the past decade, the agricultural sector's budget has been halved, and the domestic agricultural base has weakened due to climate change, increased agricultural imports, and smuggling. This situation is hindering poverty reduction efforts and causing income decline in rural areas and population migration to cities.
Damage from climate change is further intensified by the lack of infrastructure and technology in rural areas. Rising food prices are also affecting the agricultural processing industry, leading to production and productivity declines for numerous small and medium-sized enterprises.
Farmers have been pointing out these problems and demanding solutions through annual farmer marches every March, but the government remains passive in addressing the issues, denying the climate change crisis and ignoring relevant statistics.
Experts emphasize that the government must take active measures, including increasing investment in the agricultural sector, establishing climate change response policies, and strengthening management of agricultural imports. They also argue that it is crucial to listen to farmers' voices and strengthen the agricultural production base to ensure national food security.
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