The Argentinian government has decided to raise export taxes on soybean meal and oil to control inflation amid the Russian-Ukraine conflict, the agricultural ministry announced March 21.
The export levy on soybean meal and oil was raised to 33% from 31% and will be in effect until Dec. 31, 2022, the ministry said. The duty on raw soybeans was already at 33%, so the latest government decision left it in place.
The tax hike on soybean meal and oil is likely to constrict export supplies of the oilseed products, but is likely to support domestic supply and encourage exports of raw beans, analysts said.
In a decree signed March 21, the government cited Russia's invasion of Ukraine as a major factor in its decision to curb inflationary forces. "The Russian Federation's invasion of Ukraine has significantly affected the global supply of agricultural products," the government said.
The war has severely affected the global supply chain of vital agricultural products, particularly wheat, corn, and sunflower oil.
Since Argentina is also a major global supplier of agricultural products, it is necessary to encourage local farmers to continue to grow and export these products, the ministry said.
Argentina President Alberto Fernández announced March 18 that a series of measures will be taken to control inflation in the country.
Argentina is the largest exporter of soybean meal and oil and the third-largest soybean producer and exporter after Brazil and the US.