Beyond the lack of supply from Ukraine, a lower production is estimated from Australia, the European Union and China. Just this Monday it was learned that India decided to ban wheat exports to contain domestic prices of the grain.
In this regard, it is pointed out that the Executive Power It has the legal power to raise the withholdings on wheat, corn and soybeans by 3 points. (by Law 27541 on Social Solidarity and Productive Reactivation) without going through Congress.
The foreseeable rise in taxes on foreign sales of raw materials has a double objective. On the one hand, would allow resources to be brought closer to the coffers of the Stateat a time when the deficit tends to exceed the goal committed to the IMF.
as anticipated Ambitit is estimated that only in April the primary result would have been negative by about 200,000 million pesoswhen the deficit should not exceed 344,000 million in the entire second quarter.
At the same time, the increase in export duties would serve to limit the rise in domestic prices. In this regard, after the 6% rise in the April index, private consultants believe that May may have a floor of 5%, with the food item advancing around 6%.
It should be noted that the Secretary of Commerce always considered that export duties are the most efficient way to decouple international prices from local ones and, they commented in his environment, that he continues to give discussion within the cabinet.
Just this Monday the official held a meeting with the Argentine Federation of the Milling Industry (FAIM) to advance the Triguero Fund.
While the industry as a whole disagrees leaves freedom of action to companies that wish to subscribe to this Stabilizing Fund. It should be remembered that the official proposal is that the exporting cereal companies make an additional contribution to provide the Government with resources and grant subsidies for internal consumption.
Meanwhile, this Tuesday the official will receive the fresh pasta chambers, pizzeria owners, empanada houses and the bakers association
sky high prices
In economic management, it is considered that the increase in taxes is possible without affecting the profitability of producers by virtue of favorable international prices.
The supply of grains was cut by nearly 30 million tons as a result of the drought that affected the southern cone. To this must be added the effect of the war in Ukraine, one of the main world suppliers (it produces some 100 million tons).
In this context, Commodities experienced a rapid appreciation, with a rise of 20% so far this year.
Precisely this strong rise in the prices of raw materials led Minister Guzmán to think of applying a “unexpected income tax” as a way of redistributing these surpluses.
However, the government has already decided to cancel it (in fact, not even a draft of the initiative was known) since it is estimated that it would not pass the filter of Congress.
Thus, the route of the increase in withholdings offers a second opportunity to the head of the Palacio de Hacienda to carry out this policy.
Source: Ambito
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