The Bolivian government has signed a contract for the construction of a state-owned fertilizer plant in the industrial park of the city of Cochabamba. The announcement for the second such plant in the country, comes as the region suffers an agricultural crisis due to a global fertilizer shortage caused by western sanctions on Russia.
The Director of the Bolivian Company for Industrialization of Hydrocarbons (Empresa Boliviana de Industrialización de Hidrocarburos), Alejandro Gallardo, praised the move, telling media that the plant will generate $40 million in annual revenues for the country.
“This is really important for all producers because it will allow them to be more efficient and have higher incomes. Also, as a country, it will allow us to increase our productive frontier and guarantee food security with sovereignty,” said Gallardo.
The first state fertilizer plant, located in the town of Bulo Bulo, produces urea and ammonium. This second plant will produce ‘NPK’ (Nitrogen, phosphorous, potassium) which is a type of fertilizer that Bolivia was importing until now, Gallardo commented.
“In Bolivia, we are importing around 24,000 tons of NPK fertilizers. So with the production that we are going to have plus the surpluses that we are going to export, we are going to have an income of more than 40 million dollars a year”.
In contrast, free market economies of the region are dependent on importing these fertilizers and have been hard hit by the disruptions caused by NATO’s Ukraine conflict. In Peru, major protests and strikes have hit rural areas due to these shortages.
By Kawsachun News