Argentina's Agriculture Minister has decided to up the number of requirements and restrictions on corn exports after the sector reached the exportable balance of 38.5 million tons, it was reported.
Corn producers and exporters complained additional requirements, restrictions and paperwork were set in place for the clearance of their goods to be shipped abroad amid rumours which ranged from an increase in export taxes to a ban -or cap- on international sales.
Last week more than two million tons were anticipated. It is intended to order the last section of the year. Exports will not be closed, but more data will be requested, Agriculture Minister sources told the media.
Argentina is at the limit in the supply of corn, it was also reported.
The Ministry will now request exporters to submit export statements with operations duly supported with their physical purchases and with nominated ships with an estimated date of arrival.
Thus, priority will be given to the entries of the companies that have the grain purchased and the ship assigned.
There are 5 months to go before the corn for the new season begins to be harvested, and exports have already registered everything that could be exported, the ministerial sources added.
As the harvest was 60 million tons, the exportable balance reached 38.5 million, of which 96.5% came from the 9 agro-export companies. But last week more than 1.5 million tons were recorded, a high number for this time of the year, so it was decided to apply restrictions.
The Minister of Agriculture had described meat, wheat and corn as cultural goods and defended the need to intelligently manage export balances.
The acceleration of annotations of sales abroad came after rumours about a possible increase in export taxes on corn from 12% to 15%.
”To continue intervening and bureaucratizing the markets is a terrible sign which brings distrust among producers. We have already lived it since April with meat and now with corn. Our country needs all of us to be able to work freely to produce, knowing that we will be able to sell,” Argentine Rural Society (SRA) President Nicolás Pino said on Twitter
Agrifood producers are still awaiting the much-announced reopening of meat exports to China, which Minister Julián Domínguez had forecast would begin Oct. 4 but have not.
It is in this scenario that the Ministry of Agriculture decided to limit corn sales.
The ministerial resolution lifting caps on exports to China is expected to be published this week in the Official Gazette, but some traders are sceptical, in view of President Alberto Fernández's tradition of interventionism.