Argentina grain markets shut this week due to farmers' strike

Argentina's grain markets were shuttered this week, in sympathy with striking farmers and due to the impossibility of shipping any goods.

"Local activity is paralyzed," the Rosario Grain Exchange said.

Farmers launched the one-week strike last Friday (August 29) against the government's agricultural taxes and policies.

While there were concerns that the strike would be extended, on Wednesday farm groups confirmed that they would lift the blockade on grain and cattle sales next week.

However, farmers will continue with a number of nationwide protests, including a rally on Sept. 8.

Congress unanimously approved the emergency agriculture bill last month, providing at least 500 million pesos (US$130 million) in drought-relief funds. But an opposition legislator slipped in a clause suspending export taxes for farmers from districts declared "disaster zones" and cut the export taxes in half for farmers from "emergency zones" in the province of Buenos Aires.

Farmers are also upset following a congressional vote to extend the president's power to fix export taxes for another year. The midterm vote had built expectations among farmers that the powers would be revoked.

Export taxes have been a constant source of friction between the government and farmers over the past two years. Farmers launched last year's series of crippling strikes to protest higher taxes, which were later rolled back by the Senate.

In addition to the heavy tax burden, farmers chafe at export limits and repeated intervention in farming markets.