Argentina’s government is facing increased pressure on all fronts amid a growing economic crisis. Today, farming lobbies organized a 24-hour halt on sales as part of a protest against diesel oil shortage, one component of an energy crisis that has turned the country’s harvest season into a logistical nightmare.
The protest is still mild compared to past movements, such as the 2008 clash between farmers and then-President Cristina Kirchner — now vice president — which paralyzed activity for months after Ms. Kirchner raised export tax duties.
This time around, President Alberto Fernández is refusing to raise duties again despite pressure from some of his allies.
But the possibility of escalation remains, as farmers are still forced to sell their produce at Argentina’s official exchange rate, near ARS 130 : USD 1, far from the market value of the peso which currently stands close to ARS 300.
While farmers’ inputs (such as diesel oil) are also imported at the official rate, the scarcity has forced many to delve into the far more expensive black markets, leading to increased unhappiness among producers.
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