Argentina: Private sector, including supposed beneficiaries, rejected the trust to subsidize wheat and corn for mills and poultry

Published 2021년 12월 23일

Tridge summary

The Argentine government's proposal to create a trust to subsidize wheat and corn for mills and poultry through funds from exporters and producers has been met with resistance from the private sector. The Intersectoral Corn and Wheat Tables, representing various agricultural entities, have united against the proposal, citing corruption concerns and the potential for market distortion. The government's proposal would involve producers contributing an additional fee, on top of the 12% tax, with some estimates suggesting that 14 billion pesos would be needed in 2022 to subsidize the price of about 5 million tons of wheat and corn consumed in the domestic market. The private sector is critical of the government's efforts to address inflation, arguing that they are focusing on the wrong issues and not addressing the root causes of inflation.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Uncouple me from this unthinkable resistance. If Roberto Feletti, the Secretary of Internal Commerce, believed that at some point that his idea of creating a trust to subsidize wheat and corn for mills and poultry with money from exporters and producers (who were finally going to suffer the discount), thus “decoupling” domestic prices even more, since the entire private sector closed ranks to say no, that the initiative was not good and that it better look for another formula. If Julián Domínguez, the Minister of Agriculture, thought at some point that with this idea of a compensating trust he would be able to generate more noise and divisions within the Argentine Agrifood Council (CAA) and further isolate the leaders of the Liaison Table of the rest of the sector, as this did not happen either. At least for now, the Intersectoral Corn and Wheat Tables resolved to show unity and also kicked the ball for the government side. If this compensatory fund advances, it will be the sole ...

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