On Monday morning, Presidential Spokesman Manuel Adorni announced that Argentina will eliminate export duties on all grains, reducing them to zero until October 31. The initiative seeks to generate a flow of dollars at a time when financial authorities are depleting international reserves to stabilize the peso. A government source and exporters have verified that the measure encompasses products within the soy complex. “Everything except meat and fish.” one source stated.
Last week, the Central Bank executed sales amounting to US$1.1 billion over a span of three days in an effort to uphold the peso’s value, following its ascent to the upper threshold of the established currency bands. The administration of President Javier Milei has attributed the currency run to market apprehensions regarding the potential success of the opposition in the forthcoming national legislative elections. Milei has encountered multiple legislative setbacks regarding public expenditure in recent weeks.
However, it has been noted that the government’s decisions have also raised concerns among markets, including their choice not to purchase dollars when they had the opportunity to do so. “The traditional political landscape aims to create uncertainty to undermine the government’s agenda. “In doing so, they punish Argentinians: we will not allow it,” Adorni wrote on Monday morning. “That is why, with the objective of augmenting the dollar supply during this timeframe, until October 31 there will be no export duties on any grains.” The specified date occurs five days subsequent to Argentina’s national mid-term elections, during which half of the lower house and a third of the upper house will undergo renewal. At the beginning of the year, the government declared a provisional reduction in export duties. The rates experienced a temporary restoration in late June; however, a month later, Milei declared a “permanent” reduction.
Eliminating export duties entirely signifies that the government is momentarily relinquishing a substantial revenue stream to encourage exports that will generate foreign currency inflows. The rural sector has indicated that the national 2026 budget presented last week suggests the government is not intending to implement additional reductions to export duties, as the budget includes projections indicating a 23% increase in income from export duty for the upcoming year.