Argentina puts soybean bran and oil exports to a halt

The Ministry of Agriculture, Livestock, and Fisheries of Argentina suspended soybean oil and bran export sale records. The ministry announced the decision this Sunday (13).

According to the publication Clarín, the announcement was made at such a time to prevent the goods from leaving. The measure interrupts sales and exports during the 2021-22 crop period, although physical shipments have not started yet because there is no harvest.

According to government data, approximately 5 million tonnes of soybean bran and oil from the 21/22 crop were formally registered for export.

Currently, Argentina is the world’s largest producer and exporter of soybean oil and bran. According to the United States Department of Agriculture (USDA), the country is expected to account for 41% of global soybean meal exports and 48% of world soybean oil exports in the 2021/22 crop.

According to analysts, the measure adopted by the Argentine government is the first step towards a possible increase in export tariffs, the so-called ‘retenciones.’

Despite the Minister of Agriculture, Julián Domínguez, stating that the government would not change withholding tariffs, the closing of the export registry indicates a change in plans. The government will announce new measures this Tuesday (15).

The closure of the register elicited a general rejection from rural entities, self-organized agricultural producers, and the opposition.

Currently, soybean derivatives – oil and bran – are subject to a 31% tax. The grain is taxed at 34%. The expectation is to standardize the three products at 34%.

According to government estimates, the tariff change will generate $700 million in revenue.

Repercussion

The president of the Buenos Aires Grain Exchange and spokesman for the Argentine Agroindustrial Council (CAA), José Martins, said he was surprised by the Ministry of Agriculture’s decision.

“We reject any change in the game rules and any attempt to increase the tax burden on the agricultural sector, especially given that this harvest has been severely hit by drought and reduced crop yields,” added Martins.

On a social media note, the Chamber of Oilseed Processors and Exporters of Argentina (Ciara) classified the decision as “illegal.”

“It goes against Argentina’s export interests,” they wrote.

Source: Canal Rural

To read the full original article, please go to:

https://www.canalrural.com.br/noticias/agricultura/argentina-interrompe-exportacoes-soja/

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