Argentina's Farm Exports Soar with Tax Relief

Argentina's farm sector saw a 45% surge in export revenue this February due to a temporary reduction in grain export taxes. This boost comes amid low international grain prices and ongoing drought conditions, making exports crucial for bolstering Argentina's foreign currency reserves.

Argentina's farm sector experienced a significant boost in export revenue, achieving a 45% increase in February compared to a year earlier, according to the CIARA-CEC chamber of oilseed and grains crushers and exporters.

This sharp rise in exports, reaching a total of $2.18 billion, was primarily attributed to a presidential decree issued in late January that temporarily reduced grain export taxes. The depreciation in international grain prices, coupled with persistent drought conditions, had led major agricultural associations to anticipate this decree.

The South American nation, renowned as the world's leading exporter of processed soy and a major contributor to global wheat and corn supply, relies heavily on farm exports as a key source of foreign currency. Such revenues are vital for strengthening Argentina's international reserves.

(With inputs from agencies.)