“The Chamber of the Argentine Oil Industry (CIARA) rejected the 33% rise in export duties for soybean meal and oil, attempting against the industrialization of soybeans in the country.” “This measure is a clear indication that the government discourages exports and punishes industrial employment, particularly in the provinces of Santa Fe, Córdoba and Buenos Aires,” said the statement.
“The government decided to raise rates on processed products that do not affect the inflation rate but deteriorate the production, work and export conditions of the first national export complex. The entire soybean chain will be severely affected by punishing the payment capacity of the main buyer of soybeans in the country,” they added.
“The increase in export duties is not legal given that the Executive Branch lost the powers delegated by the National Congress and the decree must be endorsed by the Bicameral Commission. Agro-export companies analyze all legal actions to question said Decree“, concluded the statement.
The position of Santa Fe and Córdoba
On the other hand, the producers of Córdoba declared themselves in a state of alert and mobilization. The decision came after an assembly in Sinsacate that had the support of the Rural Society of Jesús María, Cartez and CRA.
At the same time, the producers requested a marketing stoppage for an indefinite period of time, which will be submitted to the Liaison Table. They also requested a meeting with the two Chambers of the Legislative Power and accompany Congress with a national mobilization.
Santa Fe and Córdoba, the provinces that have already spoken out against this decision, announced in parallel measures to alleviate the impact on producers. Juan Schiaretti, the governor of Córdoba, rejected “any increase in that bad tax that is withholdings” and considered that “banning exports is attacking Cordovan production and also going against the need for dollars in the country.”
In this regard, he announced three new measures to benefit the sector: a $300 million incentive program for producers to adopt Good Agricultural Practices and for Road Consortiums, a credit line from the Argentina Livestock Plan (Plan GanAR) for $3,000 million for livestock producers, dairy farmers, agricultural cooperatives and refrigerators; finally, financing of investment projects, acquisition of capital goods and working capital with a subsidy of 9% in rates charged to the National Productive Development Fund and the Provincial Government.
On the Santa Fe side, the government of Omar Perotti announced the purchase of fertilizers with credits from Banco Nación whose rate will be subsidized by the province with a maximum amount of $6 million to increase the planted area.
Source: Ambito
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