Tax cuts seen spurring Argentine biodiesel exports this year

viernes 30 de mayo de 2014 15:25 GYT

By Maximiliano Rizzi

BUENOS AIRES May 30 (Reuters) - Argentine biodiesel exports are set to rise 30 percent this year thanks to recent tax cuts that should help Latin America's No.3 economy regain its position as the world's top supplier of the fuel, local producers said on Friday.

Claudio Molina, head of the Argentine Biofuels Association, which represents companies that make soybean biodiesel, said shipments were expected to rise to 1.5 million tonnes this year, close to the country's record of 1.7 million.

Earlier this week, the government slashed export taxes on the alternative fuel to 11 percent from 21 percent.

"Without the cut in export taxes, exports would have been half of what we now expect them to be," said Molina, executive director of the biofuels chamber.

"All this year's measures combined have to have a big impact in terms of increased production," he said, adding that output should be at least 2.4 million tonnes this year.

On Wednesday, Argentina's Congress suspended taxes on local biodiesel use, providing another boost to the industry.

Among Argentina's top biodiesel producers and exporters are international grains giants Cargill, Bunge and Louis Dreyfus.

Indonesia overtook Argentina last year as the world's No. 1 biodiesel supplier. Argentine shipments dropped off after the European Union raised tariffs, accusing the South American grains powerhouse of unfair trade practices.   Continuación...