Official: amid the effects of the drought, the Government extended wheat shipments for 360 days

In the midst of a drought that is hitting the producing sector, the Government ordered a measure for the export of wheat.  (REUTERS/Marcos Brindicci)
In the midst of a drought that is hitting the producing sector, the Government ordered a measure for the export of wheat. (REUTERS/Marcos Brindicci)

Finally today, as Infobae had advanced in the last few hours, the Government advanced with the first measure to deal with the effect of the drought and also of the late frostsin the current campaign of winter crops, especially of wheat. For this reason, it was decided through resolution 114/2022 of the Secretary of Agriculturewhich was published in the Official Gazette, extend cereal shipments for 360 days.

The measure includes Foreign Sales Sworn Declarations (DJVE) of wheat with a shipment period between December 1, 2022 and February 28, 2023. It must be remembered that when registering a DJVE-360, the exporter agrees to export the agro-industrial product within a period determined based on a range of dates pre-established by the Ministry of Agriculture.

The export sector scored to market some 8.85 million tons of cereal to the world market, of which 8 million tons should be marketed in the aforementioned period. In addition, of that volume for export, they acquired 5.37 million tons, when there is still a month to go to reach the start of the wheat commercial cycle for this campaign. It should also be mentioned that producers are going to sell wheat when they are certain of the cereal they are going to be able to harvest and that it is not affected by adverse weather conditions.

And since there is a high degree of uncertainty regarding the total wheat harvest, which according to the Rosario Stock Exchange would reach 13.7 million tons and the Government’s projections are 16 million tons, it was decided to implement this measure. that seeks to ensure the supply of the internal and external market, and on the other hand that there is no pressure on prices.

Juan José Bahillo, Secretary of Agriculture
Juan José Bahillo, Secretary of Agriculture

Also with the resolution that was published today by the Ministry of Agriculture, it seeks to solve a problem that the Government itself generated, when months ago it ordered the authorization of the wheat export quota for the current campaign to be financed with the export sector, in the midst of the need to accumulate reserves by the Central Bank, but without imagining that some time later a deep drought and late frosts would complicate the outlook.

Yesterday, when official sources confirmed to Infobae the implementation of the measure, they pointed out that its objective was to guarantee wheat for the domestic market and also for export, but also to protect the producer so that they charge the price indicated by the market and not have to face any at the time of fulfilling the commitments assumed, in the face of an uncertain panorama regarding the number of tons that are going to be harvested.

In this regard, and in view of the extraordinary extension granted by the Government to wheat shipments, in Article 4 of the Official Resolution The following is underlined: “The same reasons of force majeure may be alleged by the producers in case of incurring in non-compliance with respect to the exporters, who must admit said circumstance”. This means that in the event that a producer cannot fulfill a wheat forward contract, as a consequence of the fact that he suffered losses in the harvest, You will not be obliged to deliver the merchandise within the agreed deadlines or have to pay a fine for non-compliance.

For this reason, article 5 of the provision contemplates that the Undersecretary of Agricultural Markets will be authorized to dictate the complementary and explanatory norms that allow the measure to be implemented.

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