Argentina Prepares To Confiscate Wheat Stocks

Argentina Prepares To Confiscate Wheat Stocks To Ensure Bread Supply At ‘Normal Prices’ -- Merco Press

Argentina Domestic Commerce Secretary, Guillermo Moreno has given mills and exporters until Friday to normalize the wheat market which has been under stress with bread prices doubling in the last month, and farmers’ complaining about the worst harvest in decades because of government policies.

Argentina which is one of the world’s leading exporters has seen its 2012/13 wheat production drop to below nine million tons compared to the fourteen million tons of the previous harvest.

“If by Friday the market is not normalized, the Argentine government will apply the supply and anti-hoarding law which enables confiscation of the grain and the sale of the produce to mills to ensure flour to bakeries” said the aggressive Domestic market secretary.

Argentine Agriculture Minister Norberto Yahuar announced on Tuesday that the wheat market has a surplus that hasn’t been sent to market yet. “We are waiting for the exporters to supply the grain for the local industry. If they don’t do it, the national government will carry out measures” warned Yahuar.

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Update: Argentine Wheat Hoarders to Face Jail as Bread Prices Double -- Bloomberg Businesseweek

My Comment: By forcing these insane measures and penalties there can only be one outcome .... farmers refusing to plant their crops that will result in scarce supplies and higher prices.