Argentina increases corn export volume to boost foreign exchange earnings

Argentina, a leading global corn exporter, recently amplified the available volume for corn exports and added corn to its portfolio of goods that receive advantageous exchange rates for exporters.

This adjustment aims to bolster the inflow of foreign currency into the country, which has been grappling with a reserve shortage.

The Argentine Secretariat of Agriculture’s resolution, as published in the Official Gazette, revealed that the export volume for the 2022-2023 corn crop year has been augmented to 26 million tons, up from the previously set 20 million tons.

This increase is based on the projected production of approximately 34 million tons for the current harvest.

Additionally, the exchange rate for foreign currency earned through corn export until August 31 will be set at 340 pesos per dollar.

This rate, known as the “agro dollar,” is higher than the previous rate of 300 pesos per dollar for this grain.

Amid rising global corn prices and the urgent need to boost monetary reserves, this strategy aims to stimulate the liquidation of exports and increase foreign currency income.

The government is committed to enforcing policies that reinforce the reserves of the Argentine Central Bank, and in turn, stimulate genuine income generation for the country through the export of goods that have minimal impact on domestic supply chains.

Besides corn, malting barley has also been included in the “agro dollar” portfolio, and the export balance for forage barley and malting barley has been extended.

In parallel, export quotas have been set for sorghum, malt, sunflower seed, sunflower oil, and sunflower meal.

Argentina is a major player in exporting sunflower oil and barley on a global scale.

These commodities, primarily exported by Ukraine, have increased prices due to the ongoing war conflict.