Paraguay approves 10 pct soybean export tax

Reuters

ASUNCION, Oct 9 (Reuters) - Paraguay on Wednesday gave finalapproval to a 10 percent tax on soybeans which is expected toraise $300 million per year for the world's No. 4 soybeanexporter and one of South America's poorest nations.

The tax, subject to adjustment in years of low agriculturalproductivity, was approved by Congress late on Wednesday afterearlier approval by the upper house Senate.

Paraguay exported $2.4 billion worth of soy this yearthrough August, according to the central bank.

The country is set to harvest at least 9.3 million tons ofsoy in the 2013/14 crop year, matching or exceeding the previousseason's record crop, according to Agriculture Minister JorgeGattini.

The grains business in Paraguay is largely controlled byglobal agricultural companies like Bunge and ArcherDaniels Midland.

Soybean is the country's main export, but the new tax applies to corn and wheat shipments as well.

Rates

View Comments (0)