Yesterday afternoon, the Undersecretary of Agricultural Markets informed the export sector that “as of this date and until further notice, the Registry of Sworn Declarations of Sales Abroad that involves exports of the following tariff positions will be suspended for all purposes” .
The measure had an immediate impact on the opening of international markets because our country is the world’s leading supplier of the soybean by-product.
This morning the prices Soybean prices were trading lower in the overnight segment of Chicago, in line with the losses of oil, due to a bearish start for oil prices. Soybean meal, on the other hand, was trading higher, due to the closure of the local export register and in the face of a possible increase in export duties on meal and oil obtained from the oilseed.
The government’s decision surprised the productive sector, after a week in which several ministers, governors and government officials visited Expoagro and denied possible increases in export duties.
However, we must bear in mind that while the exhibition was taking place in San Nicolás (Buenos Aires), the agreement with the International Monetary Fund was also being discussed in the National Congress. This point is very important because ultimately it refers to the effort or sacrifice that all the inhabitants will have to make, each one in their assigned place.
It is worth remembering the interview he published Ambit made to the Minister of Agriculture, Julián Domínguez, last week, in which he highlighted the enormous distance that exists between the realities of the agricultural portfolio and that of so many others of the Government: in one they speak of billions of dollars and in others percentages of poverty that reached undesirable levels are mentioned.
In the midst of this situation, the armed conflict in Eastern Europe, which involves two countries that are strong in agricultural production and energy generation, precisely the issues that generate the most internal pressure in our country since the war has caused previous stage a rise in costs that will result in more global inflation and will have a strong impact on the food sector. Perhaps the most sensitive topic for Argentina at the moment.
In the Government they consider that it is urgent to begin developing strategies to mitigate the effects caused by the rise in prices of cereals, such as wheat and corn, which exhibit record values in international markets but at the same time become a problem for who must face increases in the basic basket every month.
All the eyes of the ruling party are pointing there, even more so from the sectors linked to Kirchnerism that seek to minimize the impacts of the rise in prices in the internal market. Something similar to what happens with the discussion inside the Front of all about the agreement with the IMF, that is why tools such as an increase in withholdings or the removal of the 2% differential that exporters who add value to primary production to bring that tax from 31% to 33%.
It is clear that given the need to meet the commitments assumed and due to the increase in the cost of energy as a whole, the Argentine state will have to have more foreign currency than those stipulated in the 2022 Budget Law. the import of LNG (liquefied natural gas) it is estimated that US $ 4,000 million will be needed to buy the necessary fuel for the winter and after the increase in the price of oil, a greater impact on the productive chains is expected: as confirmed by Ámbito , fuel wholesalers have increased the value of gas oil sharply in recent days and this would have a negative impact on cost structures.
The government’s determination about export duties would become effective in the next few hours, but the need to encourage the productive sectors to invest and increase exportable balances versus the requirement of greater tax pressure to compensate the sectors with fewer resources It is a debate that has just begun.
Source: Ambito
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