Argentina's government approved the export of another 450,000 tonnes of 2010/11 wheat on Tuesday, saying farmers had declared additional stocks. Argentina is a major wheat exporter, but the government restricts international shipments to ensure domestic supply as it grapples with high inflation. Corn shipments are also curbed with a quota system of export permits.
"The Argentine state has guaranteed (the country's) food security and has taken the necessary measures to ensure that there is enough left for export," Economy Minister Amado Boudou told reporters. Farmers say the export quota system hurts their profits by reducing competition among grains exporters. Tuesday's announcement of more wheat sales came as some growers threatened protests over government farm policy.
Argentina produced a healthy 14.7 million tonnes of wheat during the last harvest and farmers are currently sowing the 2011/12 crop on a bigger area, raising expectations for an even better harvest. Tuesday's new permits bring the total approved for export this season to 7.85 million tonnes, the Agriculture Ministry said in a report. Last month Argentina approved the export of 3 million tonnes of 2011/12 wheat for shipment starting in December.