March 17, 2008

Farmers strike in Argentina cripples grain markets

Farmers strike in Argentina on Friday paralyzed the country's top grain markets as highways in different parts of the country were blocked with tractors.

Four of Argentina's leading farming associations called the strike after the government introduced a new system of sliding-scale export taxes on grains and oilseeds last week, which significantly raised levies on soy and sunseed products.

The associations originally planned to strike for two days, but leaders later on said that they will extend the protests until Wednesday.

Sales of beef and grains will be halted during the protest.

In the main grains market of Rosario, traders said buyers and producers expressed opposition, leaving the trading floor empty and halting deals on all products.

Argentina's farmers are expressing their resentment against the recent agricultural policies that have included export limits and price controls.

The agriculture sector is asking the Argentine government to modify the new export tax scheme, or scrap it altogether.

Cabinet chief Alberto Fernandez slammed the strike, saying the farm sector has benefited greatly from the weak peso and subsidized diesel fuel.

Taxes on grain and oilseed exports are a major source of revenue for the government, which has had a primary budget surplus in each of the last five years.