By Walter Bianchi
BUENOS AIRES, Feb 24 (Reuters) - Argentina farmers,
currently being hit hard by a prolonged drought, will hold a
protest next week to demand better taxation, foreign exchange
rates and financial support conditions, a major growers
federation said on Friday.
The Argentine Agrarian Federation (FAA) said producers on
Tuesday will gather at a major junction of a key highway going
from farm hub city Rosario in Santa Fe to capital Buenos Aires.
"We will demonstrate and we will continue making our
demands," the FAA said, adding it would focus on asking for
export taxes to be eliminated, financial aid to properly reach
farmers and improvements in Argentina's skewed FX markets.
Argentina's strict capital controls have stoked popular gray
currency markets where dollars are twice as expensive as the
official rate, a disincentive for farmers to export because
dollar revenues have to be converted back at the lower official
rate.
The government has at times rolled out a preferential "soy
dollar" exchange rate to encourage exports, hoping to bring in
much-needed foreign currency from its top cash crop.
The country is the world's top exporter of processed soy oil
and meal, and the No. 3 for corn. However, a long drought
worsened by climate change has led grains exchanges to slash
harvest forecasts, with the 2022/23 soy crop expected to be at
the lowest level in around 14 years.
"For two or three years punishment by various inclement
weather conditions has built up, such as droughts, floods,
frosts and hail, which have deepened this crisis, leading to
some farmers ceasing to exist," the FAA said.
The Buenos Aires grain exchange on Thursday cut its
estimates for the 2022/23 soybean and corn harvests to 33.5
million tonnes and 41 million tonnes respectively, due to the
impact of a drought, high temperatures and recent early frosts.
(Reporting by Walter Bianchi; Editing by Josie Kao)
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