Argentina, one of the largest producers and exporters of agricultural products in the world, abolished the balance volume system for wheat and corn, through a resolution from the Ministry of Economy published this Friday (10) in the Official Gazette.
The Bioeconomy Secretariat said in a statement that the repeal of a 2022 rule “seeks to put an end to one of the most distorted instruments in the commodities market.”
A 2022 regulation established export quotas “in search of a supposed safeguard of the internal market”, as recalled by the Secretariat, by establishing export records for wheat and corn to dissociate internal prices from the increase in external prices.
The resolution published on Friday eliminated this instrument that imposed restrictions on exports.
“The eliminated regulations negatively affected the functioning of grain markets, generating a drop in prices, production and exports, and deteriorating the relationship with the main trading partners”, in addition to proving to be “ineffective in controlling food prices” and generated “results contrary to those intended”, added the Secretariat.
Estimates for the 2023/24 season for corn production reach 47.5 million tons, and wheat production, 14.5 million tons, according to the Rosário Stock Exchange. (With EFE Agency)
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