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Argentina Slashes Its Grain Export Taxes

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Argentina Slashes Its Grain Export Taxes

Argentina, one of the world's most important suppliers of grain and oilseeds, is dismantling the export taxes that have long defined its farm economy, a shift that could send more cheap supply into global markets. President Javier Milei announced that export duties on wheat and barley would fall from 7.5 per cent to 5.5 per cent starting in June 2026, a change made official in the country's Official Bulletin on June 3, according to the USDA Foreign Agricultural Service.

A Bigger Prize on Soy

The larger target is soybeans. Beginning in January 2027, Argentina plans to cut the soybean export tax by between a quarter and half a percentage point each month, taking it from 24 per cent toward 15 per cent by the end of 2028, according to Reuters, which noted that Argentina is the world's largest exporter of soybean oil and meal and the third-largest corn exporter. Milei has tied the soy timetable to his coalition winning the next election, turning the tax path into a political wager, as Rio Times reported.

Why It Matters Beyond Argentina

The duties, known locally as retenciones, are one of the government's biggest revenue sources, so the cuts carry a fiscal cost the government is betting higher volumes will offset, the Rio Times analysis noted. Farm groups welcomed the move as a path to higher production and exports, according to Buenos Aires Times.

Argentina helps set the world price for the soybean meal and oil that feed livestock and fill frying pans. Cheaper exports could ease pressure on poultry feed and cooking oil far from Buenos Aires. FoodPrices Nigeria tracks verified retail prices across Lagos markets, where global feed and oil costs ultimately land.

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