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AMIS Market Monitor

last release: 7 March 2024

Policy Developments

Biofuels 

  • On 1 February, India announced it would expand support for production of sugarcane-based ethanol to INR 4.5 billion (USD 54 million), in its interim budget for 2024-25. The new figures represent an increase of INR 500 million (USD 6 million) from the 2023-24 budget estimate.
  • On 1 February, Argentina raised minimum purchase prices for biodiesel and bioethanol, through Resolution 5/2024 and 6/2024. They are set at ARS 940.33 (USD 1.13) per litre for biodiesel (up from ARS 923.59, USD 1.1), ARS 584.18 (USD 0.7) per litre for sugar-based bioethanol (up from ARS 465.84, USD 0.56), and ARS 536.98 (USD 0.64) for maize-based bioethanol (up from ARS 463.91, USD 0.56).
  • On 19 February, media reports announced India had authorised cooperatives such as National Agricultural Cooperative Marketing Federation (NAFED) and National Cooperative Consumer's Federation (NCCF) to sell maize at a base price of INR 2 291 (USD 28) per quintal to ethanol distilleries, after having the procured grain at the minimum support price (MSP) of INR 2 090 (USD 25) per quintal from farmers.
  • On 29 February, the US Environmental Protection Agency authorized eight Midwest states (Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin) to sell E15 ethanol (gasoline blended with 15 percent ethanol) throughout the year starting 28 April 2025 - including during summer months, when it is currently banned on environmental grounds due to concerns over smog.

Fertilizers 

  • On 1 February, India indicated it would expand support for nano-DAP (di-ammonia phosphate) fertilizers, as part of measures unveiled in its interim budget for 2024-25. Expenditure on organic fertilizers is set to grow from INR 60 million (USD 723 000) in 2023-24 to INR 1 billion (USD 12 million) in 2024-25, the government's budget estimates show. Expansion of nano-DAP could reduce overall outlays on fertilizer subsidies, which have increased in recent years as fertilizer prices rose. On 29 February, the cabinet also approved a budget of INR 244.2 billion (USD 2.9 million) for phosphatic and potassic fertilizers during the kharif season, from 1 April to 30 September. Through Notification No. 23011/2/2024-P&K, the Department of Fertilizers confirmed that the subsidy for phosphatic fertilizers would rise to INR 28.72 (USD 0.35) per kilogramme of nutrient (up from INR 20.82 - USD 0.25 - per kilogramme in the 2023 rabi season), while subsidy rates for other categories of fertilizer would be maintained: INR 47.02 (USD 0.57) per kilogramme for nitrogen, INR 2.38 (USD 0.03) per kilogramme for potassium, and INR 1.89 (USD 0.02) per kilogramme for sulphur.
  • On 22 February, India announced it would provide a subsidy of INR 345 (USD 4) per tonne to manufacturers of potash derived from molasses (PDM). Sugar mills would also be able to sell PDM to fertilizer companies at a set price of INR 4 263 (USD 51) per metric tonne, the government said.
  • On 26 February, Indonesia said it would increase the volume of subsidised fertilizers it provides to farmers in 2024 to 9.55 million tonnes - more than doubling the 4.7 million tonnes allocated previously. The increase comes after the government announced a budget increase for fertilizer subsidies in January (see AMIS Market Monitor, February 2024).

Vegetable Oils 

  • On 2 February, India extended, until March 2025, measures lowering basic import duties for both crude and refined vegetable oils, following a decision to reduce them in June 2023 (see AMIS Market Monitor, July 2023). Import duties will remain at zero for crude palm, soybean, and sunflower oils, and at 12.5 percent for refined palm, soybean, and sunflower oils. The Agriculture Infrastructure and Development Cess (AIDCCess) import tax on these crude vegetable oils will also remain at 5 percent.

Across the board 

  • On 26 January, the government of Argentina announced it would withdraw the fiscal chapter of an omnibus bill that had been put forward in December 2023, and which included provisions to raise agricultural export taxes (see AMIS Market Monitor, February 2024). Among measures related to the agricultural sector, the bill had proposed increasing export taxes on soy products from 31 percent to 33 percent.
  • On 3 February, China released its annual agriculture white paper, which indicated the government would raise the minimum purchase price of wheat, and maintain subsidies for rice, maize and soybeans. The policies were among a series of measures which the government said were aimed at supporting food security, preventing rural poverty, and supporting rural development.
  • On 5 February, the Russian Federation through Order Number 222-r allocated RUB 20 billion (USD 218 million) in preferential loans to farmers. The funds from the federal budget will be used to subsidise preferential loans to firms for the production and processing of agricultural products, the government said.
  • On 7 February, the European Parliament approved legislation on plants that are bred using new genomic techniques (NGTs). Two categories of NGT plants are recognised under the legislation: those which could arise naturally or be developed through conventional breeding, and other NGT plants, which would still require risk assessments and authorisation (see AMIS Market Monitor, February 2024 and September 2023).
  • On 7 February, the National Board of Revenue of Bangladesh, until 15 May, removed a 25 percent customs duty on rice imports, and cut regulatory duties from 25 to 5 percent. Additionally, until 15 April, VAT on imported soya and palm oil was cut from 15 to 10 percent, while locally produced oils were exempt. These measures aim to stabilise domestic prices during the upcoming month of Ramadan.
  • On 29 February, the Ministry of Consumer Affairs, Food and Public Distribution in India announced procurement estimates for wheat and paddy during the upcoming harvest season for the rabi crop, in April and May. The government aims to procure 30 to 32 million tonnes of wheat during the season, and 9 to 10 million tonnes of paddy, with both grains being purchased at minimum prices that are set by the government.