They analyze how to contain the rise in flour, which affects the production of bakers

The Government formalized the creation of the Argentine Wheat Stabilizer Fund

The measure seeks to reduce the impact of the increase in the international price of wheat.

The National Executive Branch formalized the creation of the Argentine Wheat Stabilizer Fundwith the objective of stabilize the cost of a ton of wheat purchased by Argentine millsthrough decree 132 published this Saturday in the Official Gazette.

Likewise, with the publication of decree 131/22, it modified the current withholding scheme for products derived from soybeans, such as oil and flour, from the removal of the differential between industrialized and unprocessed products within the soy complex.

In this way, these by-products will go from being taxed from 31% to 33% in terms of export duties, which implies a rise of two points in the rate, until at least December 31 of this year.

The creation of this Stabilizing Fund was part of the economic announcements made by President Alberto Fernández, in order to reduce the local impact of the sharp rise in the international price of wheat as a result of the war between Russia and Ukraine, two countries that concentrate almost 29 percent of world exports of this cereal.

“The new international situation imposes the taking of urgent measures that contribute to the stabilization of the internal prices of essential products for the food of the Argentine men and women, as well as maintaining an adequate volume to the supply needs of the internal market, promoting a greater production of these goods in the chain that goes from the primary producer and the primary producer to the final consumers”, is highlighted in the recitals of the measure.

The Fund will be made up of the resources from the temporary modification of export rights
The Fund will be made up of the resources from the temporary modification of export duties.

For this reason, the creation of a Public Fiduciary Fund is promoted “with the purpose of guaranteeing a specifically assigned patrimony that contributes to mitigating the increase in the price of a ton of wheat that the Argentine milling chain requires, considering the values, previous to the conflict, of the goods involved”.

Excluded from the scope of this measure are “the 800,000 tons of flour intended for export provided for in the private trust created for this purpose by Joint Resolution 3 of March 4, 2022 of the Ministry of Productive Development and the Ministry of Agriculture, Livestock and Fishing, as well as the products of the “Careful Prices” Program provided for in the reference trust”.

“The new international situation imposes the taking of urgent measures that contribute to the stabilization of the internal prices of essential products for the feeding of Argentines and Argentines, as well as maintaining an adequate volume to the supply needs of the internal market.

The Argentine Wheat Stabilizer Fund It will be made up of the resources resulting from the temporary modification of export duties provided for in Decree 131/22whose objective will be to stabilize the cost of a ton of wheat purchased by Argentine mills.

The decree bears the signatures of President Alberto Fernández and all the ministers that make up the National Cabinet.

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