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AMIS Market Monitor

last release: October 2018

Policy Developments

Biofuels

  • On 3 September, the Ministry of Energy in Argentina announced an increase in prices for biodiesel along with maize- and sugarcane-based ethanol for oil companies, starting 1 September 2018. The prices were set at ARS 22 589 (USD 610.51) per tonne for biodiesel (higher by 3.2 percent), ARS 21 097 (USD 0.57) per litre for cane-based ethanol (higher by 4 percent) and ARS 17 216 (USD 0.46) cents per litre for maize-based ethanol (higher by 5.7 percent).
  • On 6 September, in a move to promote alternative fuel sources and eco-friendly vehicles, the Ministry of Road Transport and Highways in India announced that 'green fuel vehicles' including vehicles using electricity, ethanol, biodiesel, CNG, methanol and biofuel, would be exempted from the government permit requirements such as contract carriage bus permits, goods carrier permits and cab permits.
  • On 12 September, India raised sugarcane-based ethanol prices by 25 percent for blending in fuel, to reduce surplus sugar production and oil imports.

Across the board 

  • On 3 September, faced with a sharp devaluation of its national currency against the US dollar, Argentina introduced a tax until 31 December of 2020, on export shipments of all agricultural products of 12 percent, up to ARS 4 per USD exported (for all AMIS crops, and also biofuels).  
  • On 11 September, the Ministry of Agriculture in Canada announced a federal investment of up to CAD 11.1 million (USD 8.58 million) under the Canadian Agricultural Partnership, AgriScience Clusters. The investment would target improving productivity of new pulse crops, addressing threats to the value chain, exploring the health benefits of pulses and developing innovations in pulse ingredient processing and food product development.
  • On 17 September, the US announced a list of Chinese goods including wheat, rice, soybean and maize products that would be subject to an additional tariff of 10 percent, effective from 24 September 2018. The additional tariff is expected to increase to 25 percent by the end of the year. 

Logistics/Infrastructure/Trade Junctures 

  • On 14 September, to reduce logistics costs and increase harvest profitability, the Ministry of Transportation in Argentina implemented a digital system to facilitate cargo unloading from trucks in the ports of Gran Rosario and the Province of Buenos Aires. 
  • On 5 September, the transit authority in Brazil increased minimum freight rates by 5 percent. Brazil's policy of setting minimum freight rates is reducing cargo at the ports due to higher associated costs for farmers and exporters. In May, The Federal Government also provisionally introduced a Road Cargo Transportation Minimum Price Policy (see AMIS Market Monitor: June 2018).