The Government reinstated withholdings for soy derivatives with the aim of subsidizing the production of flour. An essential product for bakeriesso it directly influences the basic basket and seeks to contain rising prices in Food and Beverages.
through the Resolution 933/2023 published this Friday, July 7 in the Official bulletin it is established that the 1.3% of the proceeds from withholdings on soybean products will be allocated to finance the wheat trust. The measure comes after the program will run out of resources due to different regulatory changes.
Likewise, the Resolution authorizes the Secretary of Commerce to issue the rules regarding the measure and that they will guarantee its correct application.
What was published in the Official Gazette highlights FETA as an essential instrument of “the national economic policy for the stabilization of domestic prices“, so it is part of the fight that the Ministry of Economy is carrying out against inflation.
The Argentine Wheat Stabilizer Fund was created in March of last year in order to “guarantee a reference value in the internal market that allows maintaining stability in the participation of the bag of flour as a component of the cost of the products derived from it”
Flour: the price is still 36% below inflation
Given the inflationary increases, lhe Ministry of Commerce updated at the end of June the reference price of flour 000. Through resolution 1029/2023, the reference price of the stock market 25kg of 000 common flour at the end of the mill was $2,142.
Despite the increase, the prices established by the FETA are below inflation, since, during the first half of 2023, an accumulated increase of 34.6% was authorized, while the accumulated CPI is 42.2%.
In addition, the rise for the fund from June 2022 to June 2023 was 78.5%, well below the 104.6% year-on-year increase in the price of French bread in Greater Buenos Aires and the 114.2% inflation in the last 12 months. In monthly terms the rise of the reference bread in May of the flute-type bread was 13.1% while the bag of flour of the trust varied 7.58% with respect to the last value.
To establish the updates, they are taken into account as a reference the variations of the FAS price of wheat by 40%that of wholesale inflation by 30% and that of wages by the other 30%.
It should be remembered that the implementation of FETA seeks to guarantee a reference value for wheat in the domestic market that allows maintain stability in the share of the flour bag as a component of the cost of the products derived from it.
Source: Ambito
