MercoPress. South Atlantic News Agency

Argentina camp fury: no grain or beef trading for 48 hours

Argentina's four main farmers' organizations have called for two days of non activity with no trading of agricultural products to protest the latest increase in cereals and oilseeds export levies. This means urban Argentina on Thursday and Friday will be exposed to limited supplies of beef and other produce.

"We have ahead 48 hours with no trading in beef or cereals", said Mario Llambias president of Argentina's Rural Confederations. "Argentina has a great opportunity to develop but government policies are complicating the Argentines' future day after day", added Llambias who underlined "this is not against the people but to try and change the current agricultural policy". This week President Cristina Fernandez de Kirchner administration announced a new permanent and flexible system of export taxes for farm produce and an increase in those applied to soybeans and sunflower seeds. The latest levies are 44.1% for soybeans; 39.1% for sunflower; 27.1% for wheat and 24.2% for corn. Economy minister Martin Lousteau argued that the new system helps to decouple from international commodities prices thus contemplating the domestic market and Argentine consumers' pockets. "This is most unfair on the provinces that will suffer a massive transfer of resources to the Casa Rosada with the purpose of disciplining governors", said Eduardo Buzzi president of Argentina's Agrarian Federation. "We reject the increase in export levies; this is a fiscal blow to the neck, and only comes to prove the government only has a fiscal policy", said Buzzi. Farm leaders also criticized the country's institutional framework. "This is the most centralized rule we can recall, which implies a strong blow to the institutions", added Buzzi who blasted the "unilateral" government decisions which are openly contrary to "the concerted governance Mrs. Kirchner promised and called for during her campaign". "Her policy and method of government has now been reduced to let us know decisions which already have been decided", he complained. Luciano Miguens, president of the all powerful Argentine Rural Society (SRA) said "these increases surprised us. The percentages imposed are too heavy and will have an impact on production. We're most concerned". "We hope the decision will be reviewed and I'm publicly requesting an interview with Economy minister Martin Lousteau", he underlined. Miguens admitted the government was after the windfall from commodities international prices but he also argued that "our costs in dollars have soared". SRA vicepresident Hugo Biolcatti described the new export levies system as "senseless". He said it does not make sense to talk about keeping the price of staples accessible and cheap when soybeans have no influence in retail prices. Argentina exports 95% of its soybean crop, there's no logic, it is senseless".