Abramilho criticizes proposal to tax corn exports

Regarding the bill that provides for an export tax on corn, Abramilho expressed itself in the following terms:

The Brazilian Association of Corn Producers (Abramilho) regrets the lack of knowledge of the author of Bill 2814/21, which is being processed in the Chamber of Deputies and establishes a 15% tax on corn exports until December 31, 2022. The truth is that corn producers do not choose to export. He simply sells the corn to anyone who wants to buy, whether domestic or foreign, given that we live in a free market economy.

Corn is a commodity on the international market. The producer often needs to sell through advance contracts with both national and international industry. There was no shortage and there has been no shortage of corn in Brazil. We have a surplus, so much so that our production is around 100 million tons and consumption is close to 70 million tons. There is always a surplus that must be exported and, often, measures like this only tend to harm the sector and discourage the market and producers from planting, taking away the competitiveness of our product.

In similar situations, other countries, in the vain illusion of benefiting the internal market, made a similar mistake, which, in absolutely no way, favored the national economy or internal supply. This is what happened with Argentina. We cannot allow our country to make similar mistakes that have been repeatedly made.

This measure is reckless and mistaken. The international market does not accept the export of taxes, which means that this cost will be passed on to the producer. We emphasize at this point that, although food inflation has increased, the inflation of inputs paid by producers already reaches 50%, in annual variation. This demonstrates the author's lack of knowledge or lack of sensitivity in proposing this rate.

Brazil is an important player in the international market for food exports. Among the main products are soy, corn, meat, whether beef, pork or poultry. From agricultural production, the country has achieved sufficient revenue to face the most serious global economic crises.

Taxing the sector in any of these chains means artificially removing its competitiveness, harming Brazil compared to its competitors. We cannot be lenient with the success story of the largest tropical agricultural production on the planet. Therefore, instead of taxing food exports, deputies should be looking for solutions to lower the cost of production and improve logistics. Because if there is a real problem for corn in Brazil, it is the lack of adequate logistics for the internal flow of corn and to guarantee exports at Brazilian ports.

More information about the case can be obtained here.