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AMIS Market Monitor

last release: July 2019

Policy Developments

Biofuels

  • On 17 June, as part of RenovaBio, the Ministry of Mines and Energy in Brazil allowed companies in the sugar and ethanol sectors to raise capital for investment through tax exemption.

Across the board

  • On 13 June, the Ministry of Agriculture in Argentina granted ARS 87 million through the National Fund for the Mitigation of Agricultural Emergencies and Disasters to assist producers in the Chaco province who were affected by severe floods (Resolution N ° 33/19). 
  • On 18 June, the Ministry of Agriculture in Brazil launched Plan Safra 2019/2020. BRL 225 billion (USD 58.4 billion) will be invested in the agriculture sector, of which BRL 222 billion (USD 57.65 billion) will be allocated to rural credits; BRL 1 billion (USD 258.1 million) to insurance premiums; and BRL 1.85 billion (USD 477.6 million) to marketing. 
  • On 5 June 2019, the Ministry of Agriculture in China recommended a list of 25 pesticides for emergency use against armyworms until December 2020.
  • On 30 June 2019, the EU and Viet Nam signed a Free Trade Agreement that will eliminate tariffs on 99 percent of goods traded, including agricultural products, and address non-tariff measures. Upon entry into force, the EU will eliminate 71 percent of duties on Vietnamese imports and Viet Nam will eliminate 65 percent of duties in return. The remaining duties will be phased out gradually over a period of up to 7 and 10 years, for the EU and Viet Nam respectively. In the case of rice, the EU will open 3 duty-free tariff quotas of 30 000 tonnes of milled rice; 20 000 tonnes of husked rice; and 30 000 tonnes of fragant rice. Moreover, the tariff on broken rice will be halved, and then subject to progressive cuts over 5 years.
  • As part of the 2019-20 Budget, the Ministry of Finance in India is set to announce the granting of interest-free short-term loans to farmers of up to INR 10 million (USD 144 930) for 1-5 years subject to prompt repayment of the principal. The government may also extend the PM-Kisan Scheme to provide direct income support of INR 6 000 (USD 86.96) to small and marginal family farms with combined land holdings or ownership of up to 2 hectares. 
  • On 6 June, the US approved the H.R. 2157: Additional Supplemental Appropriations for Disaster Relief Act of 2019, that allocates USD 3 billion to USDA to compensate farmers who were impacted by natural disasters throughout 2018 and 2019. The aid would also provide for emergency timber restoration, farmland repair and watershed recovery.
  • On 11 June, the US issued an Executive Order directing relevant federal agencies including the USDA, APHIS and the EPA, to ease rules for approving genetically-modified crops and other agricultural biotechnology. The modified review process aims to eliminate delays, reduce developer costs, enable predictability and facilitate development of genetically-modified plants that do not pose a plant pest risk.
  • On 20 June, the US Department of Agriculture's Risk Management Agency adjusted the haying and grazing date on prevented plant acres from 1 November to 1 September for 2019. The measure is directed to farmers who were unable to plant maize and soybeans this year due to widespread flooding across the US Midwest. 
  • On 28 June, the EU and Mercosur countries (Argentina, Brazil, Paraguay and Uruguay) concluded negotiations on a trade agreement that will progressively enhance market access for goods and services while promoting cooperation in customs issues, food safety, and sustainable trade.