You are currently viewing The Government assured that it does not evaluate raising withholdings on corn, soybeans and wheat

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“A number of measures are being studied, none of these measures is an increase in the withholding of corn, soybean or wheat production,” spokeswoman Gabriela Cerruti told accredited journalists from the Casa Rosada. The official explained that President Alberto Fernández is concerned about stopping the price increases (in the domestic market) that are taking place in the international context.

In the government they recognize that the rise of a couple of points for soybean meal and oil exports is being studied, although within a package of measures. It should be noted that it is estimated that this increase could represent approximately 450 million dollars, that is, 0.9% of GDP. These funds, if the increase is implemented, would be used to support the price of wheat and corn.

It should be remembered that the Government made the decision to close “until further notice” the registration of foreign sales of soybean meal and oils. This temporary closure aims to prevent the oil companies from continuing to write down business.

30 percent of this year’s exports correspond to the soybean complex, which in 2021 had contributed 9,000 million dollars to the Treasury.

The government is committed to avoiding or mitigating the inevitable impact of the rise in commodities –particularly those linked to the basic food basket, such as flour.

In this sense, various measures are being analyzed that would include raising the withholdings on manufactured soy products by a couple of points, expanding the amount of the trust for wheat, expanding the number of Care Price products, establishing maximum prices for some products of first necessity, fix the price of flour, among others. There is still no definition if all these measures will be applied together or some of them.

Different members of the Executive Branch are holding meetings with companies from the soybean complex, among other sectors, to analyze an “anti-inflationary” package, in that context it is estimated that the announcements would be “closer to the weekend.”

From the Casa Rosada they took care of communicating with the governors of Córdoba, Juan Schiaretti, and Santa Fe, Omar Perotti, to let them know “there is no thought of raising withholdings”, because it is insisted that eventually eliminate the incentive of the two differential points for flour and soybean oil, “it is not to raise withholdings.”

Subsequently, the Minister of Economy, Martin Guzmán, who spoke before the Senate of the Nation, referred to the effects of the war in Ukraine and in this context, he ruled out that they are thinking of raising withholdings “The objective is to find a balance between the incentives to production and the impact on domestic inflation. Having said that, I answer: an increase in export duties on grains, wheat, corn, sunflower, soybeans and other grains is not being contemplated, ”replied the head of the Treasury Palace. before the question of the senator from Entre Ríos, Alfredo De Angeli.

They affirm that the announcement of this package of measures due to the impact of the rise in commodities is not related to the issue of the approval of the agreement with the International Monetary Fund, although they recognize that one of the actors in the definition of measures, the minister of Economy, was devoted to its presentation before the Senate.

The situation in Ukraine worries the government “we have to understand that the economic consequences of the war have already reached Argentina”. In this sense, there are already reports from both the IMF and the World Bank that warn of lower growth and a rise in the Inflation Precisely this Tuesday the Price Index published by the INDEC will be known, which according to private estimates would be above 4% and a similar value is also expected in March.

It should be noted that many economies rely heavily on Russia and Ukraine for food supply, with both countries supplying more than 75% of the wheat imported by a group of economies in Europe and Central Asia, the Middle East and Africa.

Russia is also a major force in the energy and metals market, accounting for a quarter of the natural gas market, 18% of the coal market, 14% of the platinum market and 11% of the crude oil market. .

A sharp drop in the supply of these basic products would hamper construction, the petrochemical industry, and transportation.

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