Argentina: Government extends reduction in export duties on wheat and barley until 2026

Argentina’s Economy Minister Luis Caputo announced that the Javier Milei administration has decided to extend the temporary reduction in export duties on wheat and barley until May 31, 2026. The goal is to extend the reduction to the next harvest and generate an influx of dollars into the economy, Buenos Aires Herald reported on May 21.

The measure will not apply to soybeans, corn, sunflowers, sorghum, and all their byproducts, whose export duties will return to January values starting July 1.

Caputo made the announcement in a post on X, adding that the reduction will be extended for nine months to cover the upcoming winter harvest, which is set to begin in the coming weeks. He ended by saying that the sale of these products abroad generates US$4 billion in revenue, representing 5% of the country’s total exports.

The government initially reduced agro-product export duties in January, with an initial deadline of June. At the time, export duties for regional products were permanently eliminated, including sugar, cotton, wine, tobacco, forestry, rice, and other products. Eliminating export duties has traditionally been one of the main demands of the rural sector, which celebrated the measure.

Export duty rates on soybeans went from 33% to 26%, soybean derivatives from 31% to 24.5%, wheat from 12% to 9.5%, barley from 12% to 9.5%, sorghum from 12% to 9.5%, corn from 12% to 9.5%, and sunflower from 7% to 5.5%.

The decision was intended to encourage grain sales and boost foreign currency inflows amid pressing fiscal needs. However, data from the Buenos Aires Grain Exchange in March revealed that farmers had sold less soy and corn than in previous agricultural cycles.

In April, however, President Javier Milei announced that export duties for agricultural products would rise once the temporary reduction announced in January ends in late June. Agro exporters questioned Milei’s announcement at the time, calling for the reduction to “become permanent.”

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