RPT-UPDATE 2-Argentina to revamp wheat export system

viernes 6 de enero de 2012 10:28 ART

(Repeats Jan 5 story with no changes to text)

* Wheat farmers win change to reviled export quotas

* Gov't says 7 mln tonnes needed for domestic market

* New system will launch in late January, corn revamp next

By Juliana Castilla

BUENOS AIRES, Jan 5 (Reuters) - Argentina will reform its unpopular wheat export system, scrapping incremental quotas to try to improve prices for farmers by boosting competition in the local market, the agriculture minister said on Thursday.

The government intervenes in wheat and corn trade now by granting export permits bit by bit and subsidizing local millers. This is aimed at guaranteeing affordable food supplies in high-inflation Argentina, a major global grains exporter.

Officials also set reference prices for crops, but farmers say buyers ignore these and pay less due to restricted demand.

The new scheme will keep a cap on total exports to ensure sufficient domestic grain supplies, but it will eliminate the gradual quota system to give farmers more control over sales.   Continuación...