“Money is no longer enough”: Bolivians worried about rising prices

Between an increase in prices of the family basket that is affecting the pockets of Bolivians, are activated protests by productive and transport sectors demanding answers from the government about the supply of fuel, the shortage of dollars and other demands.

“Everything has gone up. Before she came with 200 bolivianos (about 29 dollars) and she carried a lot, but now? “Nothing, not even five hundred,” says Catalina, a mother who went to do her shopping at “El Triángulo,” a popular market in the city of Cochabamba.

In this supply center, the vendors go out early in the morning to offer wholesale and retail vegetables and fruits. Large bags and boxes occupy the improvised spaces in which they are accommodated to serve buyers, generally housewives who provide themselves with supplies to prepare the family’s food.

At the beginning of this week, the abrupt increase in tomatoes, of more than 70%, aroused the concern of Bolivians, since this product is basic and the main ingredient of “llajwa”, a type of homemade sauce that accompanies almost all dishes of Bolivian gastronomy.

The main tomato supplier is in the eastern department of Santa Cruz, which covers the demand of Cochabamba and Chuquisaca.

Currently, the main tomato supplier is Santa Cruz, which must meet the needs of the region and the departments of Cochabamba and Chuquisaca. But the supply has not been regular, according to the Association of Fruit Growers and Horticulturists of that region, since severe droughts have impacted production.

According to the director of the National Institute of Statistics (INE), Humberto Arandia, the El Niño phenomenon is the main cause of the rise in the price of agricultural products, but not only in Bolivia, but in the region. And the clearest example is the price of tomatoes, which has also registered similar behavior in Peru.

He also pointed out that “in Brazil, tomatoes are 70% more expensive, so the probability that the Bolivian product will be smuggled to neighboring countries is much higher.”

However, the government of President Luis Arce denies an “economic crisis” in the country and attributes this problem to climate effects. Although in a public event on Tuesday he also said that there is a burden due to this price increase.

“These days sales have decreased, it is empty, there are not many people. The potato they give us to the wholesaler is more expensive, but we do not raise the price so as not to lose customers, we only earn about two pesos. I think it will rise more, this is the beginning because now the irrigation season will come and it will be more expensive,” says Zenobia Mesa, a product merchant.

Fruits, which are consumed in abundance during this cold season, also have high prices, especially citrus fruits, says Maribel Zurita, who has had her stall for several years. “This dollar thing also hurts us because, for example, the apple they bring is paid for with dollars and since there are none, the price has also skyrocketed and there is no fuel either.”

The testimonies collected by the Voice of America They reflect a general concern among sellers and buyers because, as they said, they perceive how the Bolivian (national currency) has lost its value. “We buy less and less because some products like eggs have gone up for a year and have not gone down again. Maybe that’s how it will be now too,” laments a young mother.

Since February 2023, transactions with dollars in Bolivia have been irregular, generating damage in several sectors. Banking entities restrict financial operations in this currency and the creation of the so-called “parallel black market” has been denounced. The official price of the dollar is 6.96 bolivianos, but on the black market it ranges between 8.5 and 9 bolivianos, and in most exchange houses it is almost no longer offered.

Government instructs military custody

Added to the problem of rising prices is the fuel shortage that has generated lines at service stations and persistent complaints from transporters and users in general.

In a press conference on June 11, President Arce said that the diesel situation was “pathetic” and determined militarization at pumps and border crossings to control the supply and prevent smuggling. “We have made an effort to guarantee, that is why we have instructed the Armed Forces to contribute to the supply. There will be military personnel at the service stations,” the president announced.

This decision has generated divided opinions among Bolivians. Some consider that the control will help prevent smuggling and unscrupulous purchases made by some users. And on the other hand, there are those who see the military as an unnecessary and frightening presence.

Starting next Monday, the transportation sector announced road blockades and border closures throughout the country, demanding urgent action from the government.

In interview with the Voice of America, the analyst and researcher, César Vargas said that this regulation and supervision measure arises in the face of strong criticism and pressure from citizens. But he also referred to the problems that are influencing the country’s economic instability.

“The productive community economic model that the government has was very dependent on gas extractivism. As reserves have decreased, there has been less foreign currency, which forces the authorities to cover the subsidy of fuel and some foods to maintain price stability. This has unbalanced the macroeconomic scenario,” says the expert.

“The prices, according to the producers, will be irregular for at least a month, until there is some normalization. However, the tomato, in recent days, has stabilized for the peace of mind of buyers. “The tomato has dropped quite a bit. The box that arrived at this one for up to 280 bolivianos (40 dollars) can now be found for 150 bolivianos (22 dollars) or less, the first-rate tomato,” says Zulma Mérida, a vegetable seller at the popular market.

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