Argentina establishes regulations to control corn and wheat exports

The Argentine government established, on December 17th, a system to control exportable volumes of corn and wheat, which aims to prevent the internal shortage of cereals and, consequently, to stop inflation from rising food prices.

The official resolution states that an agency of the Ministry of Agriculture will establish the “balance volumes” to be exportable in Argentina, one of the world’s largest exporters of corn, wheat, soybeans, and beef.

“To ensure predictability, it is advantageous to release balanced volumes corresponding to products of agricultural origin”, stated the Ministry of Agriculture in the resolution.

Argentina faces an inflation rate of more than 50% annuanly, driven largely by domestic food values, which are also its main export commodity.

Trying to reduce inflation, the center-left government applied some regulations to agricultural markets, which were rejected by the powerful rural sector.

The Buenos Aires Stock Exchange expects the country to have record harvests of corn and wheat in 2022, reaching 57 and 21 million tons, respectively.

Source: Money Times

To read the full original article, visit the link: https://www.moneytimes.com.br/argentina-estabelece-regulamentacao-para-controlar-exportacoes-de-milho-e-trigo/

Sharing is caring!