Farmers in
Argentina's biggest agricultural province started a nine-day freeze on grains
sales on Saturday to protest a tax hike by the cash-strapped local government,
reviving tensions in the countryside. The protest by farmers in Buenos Aires
province is not expected to cause much disruption to shipments of corn and soy
from Argentina, a leading global exporter, because soy-crushing factories and
ports usually have several days stocks.
Their strike is a challenge to Governor Daniel Scioli, however, as he battles to keep provincial finances afloat against a backdrop of double-digit inflation and slower revenue growth. Scioli, seen as a possible successor to President Cristina Fernandez in a 2015 election, has had until now a more harmonious relationship with farmers, who halted sales for months in 2008 to protest a federal tax hike on soy exports.
Scioli, a moderate member of Fernandez's Peronist party, managed to push the tax hike through Congress this week despite the earlier reluctance of some lawmakers sympathetic to the farmers' complaints. He played down the impact of the updated land valuation, which officials say was long overdue, and said only 38 percent of farmers would face a bigger levy. Recent flooding capped a difficult season for Argentine soy and corn farmers after a drought in December and early January ruined some crops and slashed yields.
Their strike is a challenge to Governor Daniel Scioli, however, as he battles to keep provincial finances afloat against a backdrop of double-digit inflation and slower revenue growth. Scioli, seen as a possible successor to President Cristina Fernandez in a 2015 election, has had until now a more harmonious relationship with farmers, who halted sales for months in 2008 to protest a federal tax hike on soy exports.
Scioli, a moderate member of Fernandez's Peronist party, managed to push the tax hike through Congress this week despite the earlier reluctance of some lawmakers sympathetic to the farmers' complaints. He played down the impact of the updated land valuation, which officials say was long overdue, and said only 38 percent of farmers would face a bigger levy. Recent flooding capped a difficult season for Argentine soy and corn farmers after a drought in December and early January ruined some crops and slashed yields.
Copyright Reuters,
2012
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