Argentina suspended the registration of export sales of soybean oil and its derivatives. This was announced by the Argentine government in a statement on Sunday (13/3), which immediately drew criticism from the industry in the world's main exporter of processed soybean products.
Steps to stop sales and exports are carried out for the 2021/22 harvest. However, physical deliveries have not yet started as no harvest has been made.
The Argentine government's decision is likely to rattle the global soybean market, which has seen a spike in prices due to Russia's invasion of Ukraine.
The sub-secretary of the Argentine agricultural market said that the registration of exports of soybean oil, soybeans and other related products would soon be suspended, a move taken ahead of the 2021/22 harvest that begins in the coming weeks.
About 5 million tonnes of soybean oil and other soybean by-products from the 2021/22 harvest have so far been officially registered for export, according to government data.
The local CIARA oilseed processing and exporter chamber, which represents the industry, said the government had closed export registrations because, the association alleged, the government wanted to raise tariffs "two points" on exports.
"This is completely against Argentina's export interests," the association said on Twitter. "In addition to being illegal, it will affect foreign currency earnings and employment in the agro-industrial chain."
The government statement made no mention of export tariffs although it has long been a point of tension with farmers and exporters.
The government, battling high debt, needs dollar revenue and tax revenue from selling soybeans, Argentina's main export.
Argentina's soybean oil and food exports are currently taxed at 31%. Soybean crops for the country's 2021/22 harvest are estimated to be between 40 million-42 million tonnes, despite being hit by a drought at the start of the year.
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