The Colombian president, Iván Duque, signed on Thursday a law that creates the Coffee Price Stabilization Fund with which it seeks to help stabilize the income of producers, collapsed in recent years.
The coffee sector is one of the pillars of the Colombian economy but the 540,000 families dedicated to this work have been punished for the low prices of grain in international markets.
The Presidency of Colombia explained in a statement that the Fund will function as a special account, without legal status, and that it will be administered by the National Federation of Coffee Growers (FNC), through a contract signed with the National Government.
The law establishes that the FNC will manage the resources that make up the Fund independently of its own and those of the National Coffee Fund.
In this sense, the FNC must maintain an independent accounting and budgetary structure, so that at any moment its state and the movement of resources from each of its sources can be established.
Through this Fund, each coffee producer can be a beneficiary of the stabilization mechanisms for up to 70% of their productive capacity.
To this end, the established stabilization mechanisms will operate when the price of Colombian soft Arabian quality coffee is below the production costs technically established by the Technical Secretariat of the Fund.
Likewise, the law establishes that the resources of the Price Stabilization Fund will come from the General Budget of the Nation.
Also of the monies contributed by public entities or natural or legal persons of private law, in accordance with the conventions that are celebrated in this regard and the National Coffee Fund, among others.
Coffee production in Colombia during May of this year reached 1.1 million bags of 60 kilos, which means a reduction of 6.1% compared to the same month of 2018, reported the FNC last June.
. (tagsToTranslate) Duke (t) Fund (t) Stabilization (t) Prices (t) Cafe