Argentine farmers extend strike for another week
BUENOS AIRES (Reuters) - Argentine farmers on Monday extended their strike over a controversial export tax on grains for another week, deepening a rift with the government of President Cristina Fernandez amid nationwide protests.
Thousands of farmers demonstrated in cities through Argentina's farm zone on Monday, loudly decrying a government proposal made last week to ease but not remove export taxes linked to global prices on products like soybeans.
"We've decided to continue the non-sale of grains destined for export until 0:00 hours on Monday June 9th," said Luciano Miguens, president of the Rural Society of Argentina.
The protests in the world's No. 2 corn exporter, third-biggest soy supplier and No. 4 provider of wheat and beef have sparked and flared sporadically since the tax came in on March 11, and have helped drive up global prices for oils and grains exported by Argentina.
Miguens said that out of concern for citizens, the farmers would lift restrictions on livestock as of Tuesday morning.
The Argentine farm strike has become a crisis for President Fernandez, pushing up prices for crucial grains after farmers pledged last Wednesday to hold back shipments to ports.
A study released on Monday showed the public's confidence in the government fell considerably in May from April, hurt in great part by the farm crisis.
"People out here in the country are very indignant," one protester told national television.
"The people are very firm about the strike continuing," said Eduardo Buzzi, President of the Argentine Agrarian Federation during a rally earlier in the day in Armstrong, a central farming hub.
Farmers are demanding changes to a sliding-scale export tax system that raised levies on soy and sunseed products.
Argentina's sliding-scale system links export taxes on grains, oilseeds and byproducts to international prices, raising levies on soybeans to about 40 percent at current prices from the previous fixed rate of 35 percent.
The government last Thursday announced modifications to the taxes. But farm leaders, who want the sliding-scale tax repealed, said the measures did not go far enough.
Corrals at Liniers, Argentina's top livestock market, were empty on Monday, and activities remained frozen for the day at Rosario, the nation's main grains port.
(Reporting by Nicolas Misculin and Karina Grazina; Writing by Pav Jordan; Editing by Michael Urquhart)
