Argentine farmers call for 'urgent' end to wheat export taxes
BUENOS AIRES, April 18 (Reuters) -Argentina agricultural producers called on the government on Thursday to "urgently" eliminate a 12% tax on wheat exports, as they struggle with high production costs and low international prices.
Argentina is a major global exporter of wheat, but producers concerned about its low profitability are set to sow an area in the quickly approaching 2024/25 season smaller than the recent five-year average, the Buenos Aires grain exchange said on Wednesday.
Wheat planting in the South American grains powerhouse begins in the second half of May.
"We urge the authorities to urgently review these policies and work to implement measures that promote an environment conducive to the development of wheat production, where the elimination of export duties should come first," agricultural group CRA said in a statement.
The Argentine Rural Confederations (CRA) is one of the four most important agricultural associations in Argentina.
Farming exports are the country's main source of much-needed foreign exchange, and rural producers are an important political actor.
Libertarian Javier Milei took office in December on the back of a campaign in which he promised to deregulate the agricultural sector.
However, rather than eliminate taxes on grain exports, Milei presented a broad bill weeks into his administration that included an increase in the wheat export tax to 15%.
Congress' lower house rejected the bill in February, after the proposed tax increase drew intense criticism, including from agricultural producers.
Reporting by Maximilian Heath; Editing by Chizu Nomiyama
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