Argentina farm body says grains tax cuts not enough, lambastes government

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BUENOS AIRES, Oct 2 (Reuters)Argentina’s main farm association said on Friday that government measures to cut export taxes on grains were inadequate and failed to address issues facing local farmers amid a grave economic crisis and strict capital controls.

The center-left government said on Thursday it would reduce the export levy on soybeans, soymeal and soyoil by 3 percentage points to 30% to stimulate stalled sales and bring in much-needed foreign currency.

Farmers in Argentina, the world’s top exporter of processed soy, have held back on selling their soy harvests, a concern for the government as foreign currency reserves dwindle amid the coronavirus pandemic and low confidence in the peso as the country heads for its third straight year of recession.

Argentina is also just emerging from a sovereign default after restructuring over $100 billion in foreign currency debt.


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