Asked by Reuters, a government source with knowledge of the matter said the decision “It is under study. It is a probable measure in this context.”
The country is a key world exporter of wheat, particularly in the context of the conflict between Russia and Ukraine. However, according to Rosario Stock Exchange, The 2022/23 harvest of the Argentine cereal would be 13.7 million tons, from the 23 million of the previous cycle, due to the drought.
“There were conversations and (the Secretary of) Agriculture would be thinking of working on that (the rescheduling of shipments), and that measure would be coming out,” the source from the CEC chamber, which includes large exporters such as Cargill and Bunga, among others.
Until the end of October, the exporters had made official affidavits of sales abroad (DJVE) of wheat 2022/23 for 8.9 million tonsaccording to data from the Government, which has not yet released a harvest estimate for the current campaign, whose harvest begins in November.
“If the government is going to do it, let it do it now, because we have to turn around and talk to customers in Indonesia, Morocco, Algeria, Egypt and tell them that our wheat has burned and renegotiate those contracts,” the source said. of CEC, which explained that with the official authorization the rescheduling would not pay a fine from the Argentine Customs of 15% of the value of the shipment.
The head of the Argentine Federation of the Milling Industry (FAIM), Diego Cifarelli, also confirmed the dialogue between exporters and the Government regarding the rescheduling of shipments, what the authorities are looking for is a possible solution to a harvest adjusted to the demand of the industry and exporters.
“There is concern,” said Cifarelli, who pointed out that the demand for wheat from the mills is 6.5 million tons and that the production of the current campaign, 13.7 million tons according to the BCR, is added an additional 2 million unsold tons from the previous campaign, the 2021/22 cycle.
Nevertheless, the head of FAIM pointed out that, if there are no more losses of wheat, he believes that demand will be met, although companies will have to “seduce” producers to sell their merchandise, which will impact flour prices and food.
More hikes in Argentina’s consumer prices would be a serious headache for the ruling Peronist coalition that, amid economic and financial difficulties, is struggling to contain inflation close to 100% a year, a year before the presidential elections.
Source: Ambito
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