Sale of agrochemicals suspended indefinitely in Argentina

Date:06-05-2020

The Central Bank of the Argentine Republic (BCRA) changed the regulations related to access to the exchange market for the payment of imports, which is the reason for the indefinite suspension of the sales of several suppliers of plant protection and fertilizers.

According to a confidential source, “The main problem faced by the companies is that BCRA has placed the dollar Counted with Liquidation (counted with liqui) to imports.” Therefore, we cannot charge in dollars at the exchange rate of Banco Nación.”

“The sales tables were closed because there is no reference price,” said the Federation of Distributors of Agricultural Inputs (FEDIA).

This development is a key moment considering that inputs are beginning to become in demand for the wheat season, which is expected to be a crucial one.

“Fertilizer sales have been withdrawn after a surprise BCRA circular. This news appeared in the middle of wheat planting season,” said Santiago del Solar (Former Chief of the Cabinet of Agriculture Ministers).

“Hopefully, the impact of the measure will be understood, as well as what is playing out these days during planting,” he added.

Wheat production technology

The adoption of technology in the production of wheat and barley has been increasing at a good rate since the 2014/15 season, when retentions and export restrictions were removed.

The data on this is derived from the“Survey of Applied Agricultural Technology” conducted during the 2019/20 campaign, prepared by the Buenos Aires Cereal Exchange.

At the launch of the fine campaign in 2020/21, Sofia Gayo (Analyst of the Cereal Exchange Research and Technological Prospective Department) said, “Winter cereals contribute 50% to the rotation with grasses in Argentina, as well as to improvements in management practices, such as fertilization and the use of direct sowing.”

For the next fine season, the volume of fertilizers is expected to achieve another consecutive increase, and could grow after the next winter cycle.

Fertilization doses in wheat registered a new increase in the 2019/20 campaign at a national level. In the 2019/20 cycle, 1.6 million tons of fertilizers were used, and for the new 2020/21 campaign, a total consumption of close to 1.7 million tons is expected, or between 4% and 6%.

The original Spanish version of this report is from infocampo and El Cronista.