Argentina cuts taxes on grain exports, but only if they’re organic

Argentina will cut export taxes on soybeans, corn and wheat, but only if they are organics, which currently make up a small fraction of the major grains producer’s harvest.

The South American country’s government said many organic and ecological products would see export tariffs eliminated. Organic wheat, corn and soy would pay reduced rates under the scheme to encourage production and bring in export dollars.

The move may cheer some farmers, though it doesn’t affect the vast majority of grains exports, which do not classify as organics. Argentina is the world’s top exporter of processed soy, the No. 2 exporter of corn and a major wheat producer.

“This aims to align Argentina to the world market trend and increase the amount of products exported with organic certification,” the Economy Ministry said in a statement.

The tariff cuts will include organic wines, sauces, fruits and vegetables. Organic corn and wheat will see rates cut to 7% from 12% previously, while organic soybeans and soy meal will see cuts to 28% and 25% respectively from 33% and 30% now.

Argentina is a major organics producer, but the segment makes up a small part of its farm produce.

“We are the 2nd country in the world with the largest number of hectares planted with organic products, with more than 3.7 million hectares, only behind Australia,” the ministry said.

“However, organic production represents only 2.5% of the total hectares planted in the country.”

The ministry, which is trying to bolster domestic production without losing vital tax income on grains sales, also cut export tariffs on some “regional products”, which is said would impact products that saw exports of $2.4 billion in 2020.

hellenicshippingnews.com

Tags: taxes, soybean meal, Argentina, Organic, Australia, corn, soybean, wheat