Hundreds of thousands rallied on Sunday in the industrial centre of Rosario, northwest of the capital Buenos Aires, in support of farmers protesting export taxes on lucrative soybean products.

The opposition-backed farmers staged the protest in Rosario, the principal port for agricultural exports and Argentina's soy, two and a half months after a bitter dispute erupted over export tariffs imposed on soybean products.

"The government is blind and deaf. I hope they understand that we don't want a coup, we demand only equity and justice," Sara Castillejos, a 48-year-old farmer from the Sante Fe province, told AFP.

About 1300 kilometers to the northwest, about 150 000 gathered in Salta to hear President Cristina Kirchner — who has defended the tariffs — at ceremonies marking the 198th anniversary of independence from Spain.

Kirchner made no reference to the dispute, but the event served as a rival demonstration in support of her government.

Talks between the government and farmers failed again on Thursday, following less than two hours of discussions. Both sides blamed the other for the impasse.

The farm sector, a major exporter of grains and soybeans, has been on strike since May 8 but its leaders called a "truce" to allow last week's talks to go ahead.

The farmers have said they are ready to renew dialogue with the government but warn that if negotiations fail they will resume a strike and road blocks.

Most of Argentina's grain production is for export, and more disruption could affect supply to the strained world grain market, particularly Asia.

The conflict began in March with a strike after Kirchner raised export tariffs on soybean products from 33 to 44.1 percent. The farmers argue that along with income taxes, transport costs and the high price of land, the increase will push many of them out of business.

Empty supermarket shelves

The farmers' crippling three-week strike in March emptied supermarket shelves of food in Buenos Aires and other main cities.

The government on Friday repeated that it would not revise the sliding-scale system that links taxes on grains to global prices.

The crisis has damaged Kirchner's poll ratings, with only 26 percent saying they had a positive image of the president, a drop of 20 points since March when the dispute began, according to the private consulting firm Poliarquia.

Soybeans are now dubbed "green gold" in Argentina for the sky-high prices they fetch on the world commodity market.

Half of Argentina's 30-million hectares of farmland are now given over to the profitable plants, which represent an export income of $24-billion a year.

AFP