Argentina

Thousands back Kirchner against farmers

Article published on the 2008-04-02 Latest update 2008-04-02 11:41 TU

Kirchner speaks to the April 1 demonstration
(Photo : Reuters)

Tens of thousands of people rallied outside President Cristina Kirchner's office yesterday to support her tax-hike on soy exports. As a farmers' strike against the move enters its third week, big cities face shortages of milk, meat and other staple foods. But there are signs that the strike leaders may back compromise. After yesterday's protest, they told their supporters to allow supplies through to city-dwellers.

In Buenos Aires yesterday the crowd called on Kirchner, who was elected in December, not to back down. Protestors denounced the "landowners' oligarchy" and compared the strike to a big business lockout in 1976 which preceded a military coup.

On Monday Kirchner signed into law rises in taxes from 33 per cent to 44.1 per cent on the export of soy and sunflower.

She claims that big farmers are getting rich from soaring international commodity prices and hopes that the tax hike will earn the state six billion euros out of expected 15 billion euros profits the farmers are expected to make.

There are roughly 400 roadblocks around the country. The Interior Ministry has been authorised to use force to take supplies to the cities, if necessary. But the new law promised measures to help small farmers, leading strike-leaders to say that a compromise may be possible if talks resume.