Business

Argentinian government suspends export registration of soybean oil and flour


Band Jorge Iorio and Eliana Raszewski

BUENOS AIRES, March 13 (Reuters)Argentina has suspended the registration of export sales of soybean oil and meal, the South American government said in a statement on Sunday, prompting swift condemnation from industry at the world’s top exporter of processed goods. soy-based.

This decision stops sales and export of the 2021/22 harvest, but physical shipments have not started as no harvest has taken place. Argentina’s move will likely upend the global soybean market, which has seen prices soar due to Russia’s invasion of Ukraine.

The undersecretary for agricultural markets said in a statement that export registrations for soybean oil, soybean meal and other related products would be halted immediately, a move ahead of the 2021/22 harvest which will begin in a few weeks. About 5 million tonnes of soybean oil and other soybean by-products from the 2021/22 crop year have so far been officially registered for export, according to government data.

The local CIARA Chamber of Oilseed Processors and Exporters, which represents the industry, said the government had closed export registration because the chamber said the government wanted to raise tariffs “by two points” on exports.

“This is completely against Argentina’s export interests,” Chamber said on Twitter. “Besides being illegal, it will affect foreign exchange earnings and employment in the #agro-industrial chain.”

The government statement makes no mention of export tariffs, although these have long been a point of tension with farmers and exporters. The government, struggling with high debts, needs the dollar revenue and tax receipts from sales of soybeans, Argentina’s main export.

Argentinian exports of soybean oil and flour are currently taxed at 31%. The country’s 2021/22 soybean crop is estimated at 40-42 million tonnes, although it was hit hard by drought earlier in the year.

(Reporting by Jorge Iorio and Eliana Raszewski; Editing by Adam Jourdan and Cynthia Osterman)

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