June 12, 2008

Argentina approves export of 1 million tonnes of registered wheat

The Argentine government Wednesday (June 12, 2008) night authorised the export of 1 million tonnes of wheat that has been registered with the state, with half the amount expected to go to Brazil.

The measure, which comes amid a three-month-old farm crisis sparked by a grain export tax hike in early March, was announced during a press conference at Government Palace headed by Cabinet Chief Alberto Fernandez.

Farmers have sporadically blocked grain shipments since their protest against a tax on soy exports began. The situation was exacerbated by truck owners who launched their own roadblocks, demanding a solution to the standoff.

Ricardo Echegaray, the head of the national agricultural trade office, or ONCCA said the authorisation would allow Argentina to fulfill its overseas obligations.  

Echegaray said the remaining wheat would go to Bolivia and other countries that Argentina has been supplying.