(adds statement from the Argentine Rural Confederation)
Buenos Aires, Oct 12 (Businesshala) – Argentina’s corn export market remains “open” despite new government policy that prioritizes crops already harvested over further sales of the upcoming crop, the agriculture ministry said on Tuesday. Said to
The 2021/22 crop is currently being planted in the world’s second largest maize exporting country. The government said it wants to sell last season’s corn, the harvesting of which will not start for the next five months, before clearing more exports of the upcoming crop.
Of the 55 million tonnes of corn to be harvested next season by the Buenos Aires Grain Exchange, a record 38.5 million have been sold, according to government data. Farmers are rushing to lock in higher international prices, while their costs have been fueled by chronically high inflation.
“Argentina is moving towards exporting historic quantities of corn, which exceed the previous one,” the ministry said in a statement.
“Export is open.”
However, farmers termed the policy as an unnecessary intervention in the free market, which was announced on Monday.
The country’s four main agricultural groups, tied under the CEEA umbrella organisation, issued a statement on Tuesday saying it was “concerned”.
“The sector needs to achieve market transparency if confidence is to be restored,” it said, adding that producers have complained for months that they were aiming to control the rise in domestic food prices ahead of November’s congressional election. Actual restrictions on grain exports. .
Inflation is running at around 50% per year, as Argentina’s economy emerges from a protracted recession triggered by COVID-19.
The ruling Peronist coalition in the midterm primary last month, exposing internal cracks and jeopardizing the agenda of centre-left President Alberto Fernández.
Peronists have historically struggled with the peasantry. Earlier this year the government temporarily imposed quotas on corn exports and threatened to raise taxes on wheat shipments, triggering protests.
The CIARA-CEC Chamber of Export Companies said on Tuesday that the new policy does not mark a shutdown of exports, but a move to prioritize corn already harvested for international sales. CIARA-CEC chief Gustavo Idigoras told Businesshala that the ministry “has the authority” to regulate the market in this way. (Reporting by Hugh Bronstein Editing by Margherita Choy and Alistair Bell)