Lemon producers in Tucumán, the largest growing are in Argentina, seeing production costs rise in the wake of devaluation of their currency last week.

The Argentinean peso was pegged at parity with the dollar but has just been devalued by 40 per cent. Producers purchasing imported inputs such as fertilisers and pesticides are buying at dollar rates and are already feeling the full effect of the crisis, said citrus association president Enrique Prado.

Some agro-chemicals suppliers are charging at the new rates, he alleged, despite the fact that they imported and paid for their supplies before the start of the growing season in August 2001 when the peso was still at parity with the dollar. Whereas producers will only be able to sell on the national market with the peso at the new rate.

'I think that the rules of the game must be clear for both sides,' said Prado. 'SIf they are charging at one rate, we should be able to as well.' However, those who export their product should feel the benefit of devaluation; 'We will be able to sell at dollar prices,' he said.

Argentina is the world's largest lemon exporter. Fruit is available in the UK in June and July.

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