MercoPress. South Atlantic News Agency

Argentina targeting export industries, facilitates the import of fertilizers

Argentina plays an important international role as a global supplier and exporter of soybeans, wheat, corn and other food commodities

Argentina has eased conditions for importers of fertilizers and crops' protection products, among other issues by facilitating access to much scarce foreign currency. The Central Bank has increased restrictions on sumptuary imports, traveling, and overseas purchases given the lack of sufficient dollar reserves for the purchase of industry imports.

However flexibilization of essential imports, mainly for industries and agriculture which are the main sources of foreign currency, have also seen the term of access cut from 90 to 60 days. The Central bank “also reduced from 365 to 60 days the term for access to the foreign exchange market to pay for inputs used for the local production of export goods”.

Argentina plays an important international role as a global supplier and exporter of soybeans, wheat, corn and other food commodities but is undergoing a long term debilitating political situation, creating a scenario of extreme instability which reflects in the lack of business confidence, inflation and a country risk above 2,500 points.

Likewise a cabinet reshuffle has taken place following the resignation of the former Economy minister Martín Guzmán, an official trusted by the IMF, the Paris Club and potential investors.

In the midst of this scenario, the main agricultural organizations had called for a commercial strike to protest government policies, plus the lack of fertilizers and diesel fuel for farm machinery.

Changes in Argentina have coincided with the announcement from the government of Ukraine reducing the export quota for mineral fertilizers from 200,000 quarterly tons to zero. Decision applies to the overseas sale of nitrogen based chemical fertilizers.