March 4, 2009

Argentina's farmers have called for clarity over a government plan to intervene in the grains market.

Local press reports said the government plans to create an agency to influence market prices while holding a controlling stake. The move was said to be the government's plan to avoid a repeat of last year's crippling farm strikes.

Agricultural groups reacted angrily against the idea, viewing it as a desperate bid by the government to shore up declining state finances by grabbing control of Argentina's powerful grains market.

Carlos Garetto, president of Coninagro, one of Argentina's main farm groups, claimed that there is great indignation in many parts of the country.

Agricultural leaders said the intervention would have to be debated in Congress and should not be carried out by degree.

Garetto said the government should tell the farmers what the terms are instead of keeping them in suspense.