August 6, 2025

Argentina permanently cuts export duty on soybean & sunflower oil 

Argentina permanently reduced the export duty on soybean oil, soymeal, soybean and sunflower oil to tap more global agricultural trade opportunities and, which is likely to put pressure on international edible oil markets in the near term.

Argentina President Javier Milei announced this policy during the Palermo Cattle Show held in Buenos Aires on July 26. As per the reports, the export duty on soymeal and soy oil has been reduced from 31% to 24.5%, on soybeans from 33% to 26%, and on their products from 7% to 5.5%.

As per reports, President Milei has announced that these cuts were permanent and will not be rolled back during his tenure.

Earlier, the Argentine Government had temporarily implemented the same tariff cuts on January 27, 2025, which remained effective till June 30. However, the old rates were restored again on July 1. After pressure from the farming community, the government has now implemented these cuts permanently.

Meanwhile, in India, the edible oil traders expect a positive impact on the domestic edible oil trade.

Shankar Thakkar, president of the Edible Oil Federation, has said that these cuts will further strengthen Argentina's competitive position in the global soyoil trade and with the reduction in export duty, Argentine suppliers will now be able to offer cheaper prices than other countries like Brazil and the US.

"The international oil market is already under pressure due to seasonal production growth (in soy and palm oil) and weak crude oil prices. In such a situation, new price competition from Argentina after Russia may put further pressure on prices in the near term. Which can benefit Indian consumers during the festive season," said Thakkar.

-      Food and Beverage News