By Xinhua
Rio De Janeiro : Most of Brazil’s wheat mills may have to halt their production as the country is waiting for a decision from Argentina which has suspended wheat exports to Brazil, local press reported Friday.
The government of Argentina, a main source of Brazil’s wheat imports, suspended wheat exports in an effort to fight inflation in the country by ensuring domestic supplies of the product during the off-season period.
The press report said Argentine officials have promised several times to restart its wheat export to Brazil, which is expected to happen as early as next week.
Argentina’s suspension of wheat export led Brazilian traders to import wheat from other countries, like the United States and Canada.
But the import from the North American countries was limited as Brazil can only import a maximum of 1 million tons from countries that do not join the Common Market of the South, which is comprised of Argentina, Uruguay, Paraguay and Brazil. Imports above that quota will be charged an extra tariff.