Government He decided close as of this Sunday the records for new exports of soybean oil and flour “until further notice”. Private sector sources say that It is the previous step to the implementation of an increase in export duties for the oilseed industrial complexas the administration of Alberto Fernandez comes evaluating as a result of the increase in the international price of this crop in recent weeks.
“Having received the corresponding instructions from the Minister of Agriculture, Livestock and Fisheries, this Undersecretary of Agricultural Markets informs the export sector of agricultural products included in the regime created by Law 21,453 that as of the date of this and until new notice The Registry of Sworn Declarations of Sale Abroad that involves the export of the following tariff positions will be suspended for all its purposes”says the official statement, signed by Undersecretary Javier Preciado Patiño, who then outlines the tariff positions corresponding to soybean meal, soybean oil and other by-products.
What withholdings would go up
Currently there is a differential in export duties between soybeans, which pay 33 percent, and their by-products, such as flour and oil, which pay 31 percent. This difference was explained at the time by the intention to encourage the export of products with higher added value.. However, in the industry they had been speculating on the possibility that the government could eliminate this gap.
Unlike wheat and corn, the impact generated by the rise in the price of soybeans on domestic prices is much less because the oilseed is practically not consumed in the local market, although it is often used as animal feed. This led some specialists to speculate in recent days that this punctual rise would not have the objective of decoupling international prices from local ones, but rather increase collection, taking advantage of the increase registered in the international price of the crop in recent weeks when As a result of the war in Ukraine, the ton soared above 600 dollars, reaching its highest value since 2012.
If the rise of 2 points in soybean by-products materializes, the government could increase the collection in an additional $400 million raising the total figure for retentions of these products to about $6.8 billion annually, because it would be applied right at the beginning of the harvest. The soybean, on the other hand, will continue to pay 33 percent. In fact, your export is not closed.
The decision to close the registry it is practically a confirmation that the retentions of these products will rise and aims prevent exporters from rushing to register their sales abroad in order to freeze the current export duty.
If the rise is finally confirmed, the Minister of Agriculture Julian Dominguez It will remain in an uncomfortable place since in a press conference offered on March 3, it had denied a rise in withholdings. “This ministry wants more to be exported and this minister wants to reach a million tons and the agricultural issues since I took office, are decided by this minister and the President, that is why there will be no export closure or increase in withholdings. This is the vision and the task that the President of the Republic delegated to me”, he assured then.
businesswoman reaction due to the increase in withholdings
As soon as the closing of the registry was known, the Chamber of the Argentine Oil Industry (CIARA) He took it for granted through his Twitter account that the government’s decision is to raise the withholdings of the industrial complex by two points and advanced his rejection: “It is totally contrary to Argentina’s export interest. In addition to being illegal, it will affect the income of foreign currency and employment in the agro-industrial cordon”, assured the entity. In addition, CIARA announced that the measure “ends corn, wheat and oil trustssince it changes the conditions of foreign trade.