Argentina corn area to rise in 2020-21 after soybean export tax hike: Buenos Aires Grain Exchange

New Delhi — Corn planted area in Argentina is likely to rise slightly in 2020-21 as farmers are seen shifting to corn from soybean following the recent increase of export duties on soybean, Buenos Aires Grain Exchange said in a report Thursday.

Argentina increased export taxes on soybean complex to 33% from 30% on Thursday.

Farmers are likely to plant corn on 6.336 million hectares in 2020-21 compared to a previous estimate of 6.158 million ha with export tax on soybean at 30%, the report said.

The soybean area is now seen at 17.27 million ha for 2020-21, up from an estimated 17.69 million ha.

Corn production in 2020-2021 is now seen at 50.71 million mt, while soybean output is seen at 53.11 million mt, the report said.

Without the increase in the export tax on soybeans, corn output was expected to be around 49.28 million mt and soybean at 54.51 million mt for 2020-21, according to the exchange.

Argentina is the third largest corn exporter in the world.

In December, the new government increased tax on corn exports to 12% from 6.7%.

The administration of President Alberto Fernandez, who took office in late 2019, has been trying to deal with a tough financial situation. Tax increases have been part of the measures adopted in recent months.

On Sunday, in a speech to the country's Congress, Fernandez said the agriculture sector in Argentina "must make an effort, because those who produce and export are currently in better conditions."

Argentina is the world's largest soybean meal and oil exporter, and a major global supplier of raw soybeans, behind only Brazil and the US.