Sat05192012

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Back Mexico Mexico News Business $34 billion pesos against the drought

$34 billion pesos against the drought

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By Eliane Portillo

2011 was the driest year in over 30% of the national territory. Crops of beans, wheat, forage and white corn are the most affected.

The nearly $34 billion pesos for the comprehensive program for the attention of the 2012 drought are a significant amount of money against one of the worst natural phenomena experience in the country. This drought is the most severe in the last 70 years affecting 19 Mexican states, mainly five: Zacatecas, Coahuila, Chihuahua, Durango and San Luis Potosi. This disaster currently affects 1,900 municipalities.

Experts said that the cycle of rainfall is a natural phenomenon and that, in approximate terms, Mexico is experiencing a major drought every 13 years. It is this cycle of drought which has seriously affected agriculture, mainly beans, wheat and white and forage corn crops.

The Secretariat of Social Development (Sedesol) has preserved and increased productive capacity, both in works of hydraulic infrastructure and assurances. To do this, allocated to the Productive Activity category $14,000 billion pesos for various programs to maintain productive capacities and support to producers in the field in those areas where the drought is more severe.

For the Comprehensive Attention to Drought Program for 2012 will be used $2.5 billion pesos to deal with the shortages of water for the population. Other $785 million pesos will be used for programs of social protection and preservation of employment opportunities.

In addition, $725 million pesos will be invested for protection to the family income programs and $750 million pesos for support programs for temporary employment in affected areas.

Also, $4 billion pesos will be used for the reactivation of wells, as well as the modernization of irrigation canals and $2.8 billion pesos for insurance and $8.4 billion pesos for financing.

The National Water Commission (Conagua) has $542.5 million pesos for the Stabilization of Basins and Aquifers Program to mitigate the effects of drought.

Financiera Rural (Finrural) has $900 million pesos from damage by natural disasters. We have planned this year use $25 billion pesos of which we do not have specifically established how much might be to drought; last year were about $900 million pesos, this year could be more or less, but budget is open and we are prepared to face whatever comes, said Gustavo Merino, head of Finrural.

The official stressed that Financiera Rural increased the amount of credits in the rural sector of the country in 2011, despite the damage caused by frost and drought, by placing resources by almost $24 billion pesos, representing a 9.1% growth compared to 2010; so this year is expected to also have positive numbers.

Real funding for investment in productive assets was increased by 25% representing almost $4 billion pesos.

 

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