After the Reduction of Withholdings, Agricultural Settlements Grew Significantly

After the reduction of withholdings by the Government of Javier Milei, the agro-export sector liquidated USD 2.181 billion in February, which represents a 45% increase compared to the same month of the previous year. Additionally, in monthly terms, the growth was 5.2%.

This was communicated on Monday by the Argentine Oil Industry Chamber (CIARA) and the Cereal Exporters Center (CEC), entities that cover 48% of the country's exports.

"The foreign exchange income for the month of February is the result of the start of Decree 38/25, which implies a temporary reduction of export duties for the cereal-oilseed complex and which only began to have effects in mid-month when the regulations of the mentioned Decree were completed," the entity stated in a release.

They added: "The growth of soybean purchases at price and to be set during the month of February marked the pace of producer sales."

It should be remembered that the Milei Government had announced that, "thanks to the consolidation of the financial surplus obtained by the central administration, there will be a temporary reduction of withholdings on the field through the reduction of the rate for the main crops."

"Additionally, the permanent elimination of withholdings for regional economies was arranged, in light of the severe emergency context faced by the agricultural sector due to sustained drought and the drop in global prices," they had added.

The reduction of withholdings

Regarding export duties, the rates were as follows: for soybeans, the rate dropped from 33% to 26%, while for its derivatives it decreased from 31% to 24.5%.

In the case of wheat, it was reduced from 12% to 9.5%; barley went from 12% to 9.5%; sorghum decreased from 12% to 9.5%; corn, from 12% to 9.5%; and sunflower, which had a rate of 7%, was reduced to 5.5%.

The products of regional economies were favored with the complete elimination of withholdings, benefiting sectors such as sugar, cotton, bovine leather, tobacco, forest industry derivatives, and rice, among other crops.

CIARA-CEC highlighted that the cereal-oilseed complex, including biodiesel and its derivatives, represented 45% of Argentina's total exports in 2024.

The main product exported by the country is soybean meal, followed by soybean oil and corn. "Argentina remains stagnant in its production and export growth, relying exclusively on international price variations to modify its export structure," they indicated.