The increase in withholdings on by-products was valid, as established in the compensating fund for the price of wheat, until December 31. The Government then brought forward the return of the differential by a month to the approval of the industry, which in turn promised to settle at least some US$3,000 million in the local exchange market that will begin to be felt as of today. It is that so far in November the sector had entered less than US$1,000 million with an average daily settlement of just US$50 million. That is the story that the economic team seeks to change.
With the previous version of the soybean dollar, the field liquidated more than US$7,000 million that served to meet international commitments, meet the demand for production reserves and, of course, calm the local exchange market. That truce immediately seemed to have been limited and that is why Massa once again resorted to his already fluid dialogue with the agro-exporters.
Meanwhile, the minister announced that not only will producers sell the more than 11 million tons that they still keep in their silos, but also progress will be made in a compensation plan for those sectors that may be affected by this differential. In short, those who allocate the oilseed for animal feed, thus a specific compensation scheme is expected for dairy farmers and livestock producers, among others.
With an eye on 2023, which arrives in just five weeks, the economic team and the Ministry of Agriculture anticipate that progress will also be made with a “significant” reduction in withholdings to regional economies. With the focus on those that are finding it difficult to export or suffer the effects of rising production costs in dollars.
Finally, something already common in local agricultural policy: various rural entities came out to criticize the launch of the new edition of the soybean dollar.. Carbap, the Rural Society and the Agrarian Federation stated over the weekend that the countryside needs “clear rules” and not emergency measures in the face of economic needs. On the other hand, from the association that brings together the self-convened producers they were even tougher and in a statement they stated: “From AAPA we cannot silence this robbery of the producers. Our association cannot be complicit in the lies of inexperienced and malicious government officials. Nor can we ignore the fact that other leaders in our sector are deaf and look the other way, leaving their representatives on the Titanic”.
The pearl of the weekend is that one day after the announcement of the new exchange rate, more precisely on Saturday, while the Argentine team was playing in Qatar, members of that same group of self-summoned people who denounced the producers as “theft”, uploaded selfies on social networks from the stadium almost 14,000 km away from Argentina and its economy.
Source: Ambito
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