Noureldein GhanemArgentinian truckers have agreed to call off a strike that had paralysed grains transport in the country since Monday, the Transport Ministry has said.
Truckers represented by the Federation of Argentine Carriers (FETRA) had been demanding higher freight rates and talks with the government on Wednesday failed to make progress.
A source close to the talks on Thursday told the Reuters news agency that "it was finally resolved with an (increase of) 20 percent and the immediate lifting of the strike".
"After almost four hours of meeting, an 11 percent reference rate agreement was reached until the month of March," the source said.
There was a further discussion over April rates and a total of 20 percent was agreed, the person said, declining to be identified citing a lack of authority to provide details on the negotiations.
Argentina is the world's No. 1 exporter of processed soy oil and meal, and the No. 2 for corn.
The FETRA, which represents the truckers, had been demanding an increase in grain transport rates to offset rising fuel prices in the past weeks.
The rates had been updated at the beginning of February, in an agreement between transporters, the government and agricultural producers, but Argentina has been dealing with spiking inflation.
Retail prices in the southern country rose by 6.7 percent in March, accumulating an increase of 55.1 percent in the last 12 months. Inflation has been exacerbated by the conflict in Ukraine, which raised world prices of raw materials.
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Farming exports paralyses
The four-day-old strike has paralysed farming exports, industry sources said.
Thousands of trucks that haul grain and its derivatives have parked along the side of the road in the South American country.
"The entire agricultural export complex is paralysed. The Argentine economy cannot afford this luxury," said Gustavo Idigoras, president of the Ciara-CEG oil and grain exporters chamber, in a statement.
Haulage companies are unhappy with the amount they are being paid to transport grain since their fuel costs have shot up.
"Agricultural businesses are denying the real price of diesel that haulage companies are paying," said FETRA.
The official price of diesel in gas stations is 110 pesos ($0.93) per liter, but FETRA says truckers are being charged 191 pesos ($1.60) due to shortages.
Strike at harvest time
The strike came during full harvest time in Argentina's farming industry.
"The strike is causing losses of about $100 million a day. About 200 tons (of produce) have been left unloaded at port terminals. We have 50 boats waiting," said Idigoras.
Whereas there are normally 3,000 to 4,000 trucks a day arriving at Argentina's ports, currently there are only around a dozen, he said.
Idigoras also said there was not enough diesel for tractors to harvest the grain in fields. Argentina's grain industry was worth $35 billion in 2021.
