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AMIS Market Monitor

last release: May 2017

Policy Developments

BIOFUELS

  • On 4 April, the EU Parliament requested the European Commission to phase out the use of vegetable oil for production of biofuels because of environmental concerns.
  • On 12 April, the US Department of Commerce initiated a countervailing and antidumping duties investigation on imports of biodiesel from Argentina and Indonesia from January to December 2016. Preliminary determinations are expected to be made within 65 days after the date of initiation. 
  • On 27 April, new legislation was introduced in US Congress that, if approved, would convert the blenders' credit for biodiesel to a USD 1-per-gallon production credit for fuels produced in the United States for three years. Furthermore, small scale biodiesel producers would be entitled to a 10 cent increase on the dollar per gallon credit.

ACROSS THE BOARD

  • As part of the national food supply strategy, and in order to ensure the effective distribution of agricultural goods, on 10 April the State Council of China issued guidelines concerning the redistribution of available arable land. In the course of the next three years, some 60 million hectares are to be allocated to cereals (including maize, wheat and rice) and 19 million hectares to soybeans, cotton, rapeseed, sugar cane and natural rubber. 
  • On 9 April, the Ministry of Agriculture in India launched an initiative to increase and diversify marketable surplus; facilitate the allocation of loans to small-scale farmers; and encourage investment in market infrastructure from public and private sectors.
  • On 18 April, the US and Australia signed a Food Safety Recognition Agreement to streamline trade-related procedures. 
  • On 25 April, an Interagency Task Force on Agriculture and Rural Prosperity was established by presidential executive order in the US in order to promote economic development and revitalization, job growth, infrastructure, innovation, and quality of life in rural areas. Among other aspects, and based on direct inputs from the agricultural community, the Task Force will focus on tax policies, conservation requirements, as well as food safety issues. Its recommendations for legislative and administrative actions are expected to be released within 180 days.

PRESS STOP (March 2017)

On 31 March, India approved the removal of all quantitative ceilings on individual organic crops (including wheat and non-basmati rice) and allowed unrestricted exportation of all certified organic agricultural and processed products. The policy is intended to encourage adoption of premium-priced organic agriculture and to support producers' incomes and efforts to establish stable market linkages domestically and abroad.