Argentinian government considers temporary reduction in export rates to encourage grain sales

According to the Argentine newspaper La Nacion, producers in the neighboring country still have soybeans and corn from the 2019/20 harvest to be sold at values ​​that add up to around US$ 10 billion and a possible change in the retention policy (fees charged on exports) could encourage those sales.

The Argentine government is studying a temporary reduction in retentions or a change in collection. The possible implementation of the measure was not commented on by representatives of the different links in the agro-industrial chain, nor by the government.

“I have no doubt that it (a possible modification with a reduction in retentions) would help exports at this moment, as long as there are also measures in this framework that generate confidence in the future. If they say that the retentions are falling but tomorrow the dollar will devalue – that if I withdraw the retentions, it will have the same value as today – I will probably stay put because with grains I at least maintain the purchasing power ”, said Jorge Chemes, President of the Argentine Rural Confederations (CRA), to “La Nacion”.

Another source told the newspaper that, in addition to this change in export taxes, a change in the country’s agribusiness policy is needed. “The export tariffs for soybeans are very high; we have to encourage the planting of the next harvest”. The source added that the water stress expected in the next campaign “could be eased if there is an investment in a larger technological package”. “We need to agree on a schedule with the government for reducing duties (fees) for the entire soy complex. The rates must take into account the degrees of industrialization of soy and promote equal conditions for competing” added an agro-exporter.

Source: Valor Econômico

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