Argentina: Why maintain withholdings on wheat if the State has already collected almost all of what corresponds to the 2023/24 cycle?

Published Apr 16, 2024

Tridge summary

A recent report by Nóvitas consulting firm criticizes the Argentine government's decision to maintain a 12% export duty on wheat, barley, and corn for the 2023/24 season. The report reveals that over 85% of the expected export duties have already been collected due to early export sales registrations, suggesting that further imposition of these duties will not significantly benefit tax revenue. Moreover, it warns that these duties could discourage future planting, as evidenced by a drop in future prices and producer interest. With an estimated exportable supply of 8.0 million tons of Argentine wheat, the report suggests that continuing these export duties could harm the agricultural sector's future prospects.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

It makes no sense to maintain export duties on wheat – when we are one step away from the start of cereal planting – because most of the export duties corresponding to the current campaign have already been collected. This is indicated by a report prepared by the consulting firm Nóvitas –directed by Enrique Erize–, which warns that, with a total available volume of 18.8 million tons (harvest + initial stock), the exportable supply of Argentine wheat in 2023/24 is 8.0 million tons. The Nóvitas report shows that Affidavits of External Sales (DJVE) of wheat 2023/24 have already been registered for 1.23 million tons, while another 5.80 million registered for the 2022/23 period were extended so that they can be used in the present campaign. This implies that DJVE of 2023/24 wheat was registered for more than 7.0 million tons out of an estimated total of 8.0 million, which implies that more than 85% of the withholdings receivable were already received by the national State. . This is ...
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