Economy in brief
GAS PRICES SET FOR 50% JUMP FROM APRIL
Consumer gas prices in Argentina are set to rise between 47 and 54 percent for households and 55 and 66 percent for small and medium businesses, following a public hearing on the matter held yesterday. Once determined by gas distributors at the end of March, the proposed hikes will take effect from April. The final increase will also depend on the exchange rate of the dollar and February’s wholesale price index. It will bring the year-on-year increase in gas prices fromw in ter 2017 to 110 percent forhous eh oldsand120per cent forsm al land me di umsized bus in ess,Ámbi to Financiero noted.
FARMERS AGREE SEED ROYALTIES DEAL
Farmers have agreed to settle their dispute over royalties with the producers of genetically modified seeds, Reuters reported on Thursday. The agreement will end a years-long dispute over what happens to new seeds generated from harvests that w eres ownusingg ene tic allymodified se eds. Under previous legislation, farmers were allowed to use the new seeds without paying royalties, a position that firms such as Monsanto believed were unfair. The Rural Society and the Argentine Seed Producers’ Associated confirmed they had reached a deal with a group representing producers in comments delivered to the news agency. “There is recognition that these [royalties] must be paid, and that we producers have to pay for this service,” Daniel Pelegrina, president of the Rural Society, told Reuters. “Thiswillgivecer ta intyt oc ompa ni es,whi ch are going to release new technologies and be able to collect payment, and for producers, who need technology to increase our productivity.” Some experts believe a new seed law will be introduced into legislation, in wake of the deal. Previous efforts have failed in Congress. Under the agreement, royalties will be eligible for payment for three years after purchase, under which a sliding scale will be assumed.
US BIODIESEL TARIFFS
The US Commerce Department announced Wednesday it had delivered a final ruling concluding that biodiesel imports from Argentina had been dumped. The move fixes dumping duties for local biodiesel at 60.60.44 to 86.41 percent. Argentine importers will now have to face paying cash deposits on their fuel. In 2016, Argentine biodiesel exports to the US totalled US$1.2 billion.
SOY ESTIMATES SLASHED
The Rosario Grain Exchange this week cut soy and corn forecasts significantly in the wake of continued drought. “The soy crop was revised down to 46.5 million tonnes from 52 million tonnes previously while the expected corn crop was cut to 35 million tonnes from 40 million tonnes previously,” Reuters reported. PRIMARY FISCAL SURPLUS IN JANUARY
Argentina posted a primary fiscal surplus of 3.9 billion pesos (approx US$200 million) in January, up 10 percent from January 2017 when it had collected unusually high revenues due to the blanqueo tax amnesty whitewash, the Treasury Ministry announced on Tuesday.
TEACHERS UNIONS IN BA PROVINCE REJECT OFFER
Negotiations between teachers and the authorities in Buenos Aires province failed to make headway this week, with unions having rejected the latest offer from the government. With the government insistent that its offer will not go above 15 percent, without a trigger clause should inflation post higher, officials this week offered a 6,000-peso bonus dependent on teachers missing no more than four days work without an acceptable explanation. With around 9 days to go until classes are due to commence, there seems to be no deal in sight.