Reducing informality is key to the future of agriculture in Peru.

Francisco Camino, director of the Association of Agricultural Producers' Guilds of Peru (AGAP), urges the government to involve business leaders in working groups to formulate public policies that promote formalization in the agribusiness and agricultural sectors. Camino highlights the critical labor situation, stating that "Agriculture in Peru has no future while 78% of Peruvian workers remain in the informal sector."

The union leader emphasizes the legal rigidities, stating that "Labor laws in Peru are probably the strictest in Latin America, and I would even say in the world," hindering formalization for small and medium-sized businesses. He proposes labor flexibility "without neglecting or reducing labor rights."

Camino highlights the resistance of some workers to formal employment due to fears of wage reduction, leading them to opt for informal jobs. She mentions that many employers include the EsSalud contribution in the salary, since workers already have the Comprehensive Health Insurance (SIS), and questions: "Why pay for EsSalud insurance if they already have SIS?"

Regarding public policies, Camino underscores the disconnect between the State and rural realities. He emphasizes the lack of health services in rural areas and the high rate of job turnover. He warns that laws designed for large corporations generate informality, and that changes to the Agricultural Promotion Law have driven small and medium-sized enterprises into the informal sector, negatively impacting both the country and the agricultural sector.

Regarding security, Camino highlights the problems of extortion and the lack of effective security measures in rural areas. He warns that investment is discouraged without security and adequate transportation, pointing to the need for a comprehensive approach to improve investment and development conditions in the agricultural sector.

Source: https://agraria.pe/noticias/la-agricultura-en-peru-no-tiene-futuro-si-no-se-reduce-la-in-34258