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Brazil's farm sector, which accounts for 40 percent of trade revenues, protested in the national capital Brasilia on Tuesday and demanded more government aid to weather its current crisis.
Brazil's massive grains sector, mostly soy producers, are now in their fourth week of protests across the grain belt. They have been blocking numerous key roads and railways in the center-west and south on which grains are shipped to port.
So far, the ports have continued to ship grains without delays, but specialists warn that if the government does not aide the sector and bring an end to the protests, shortages could soon occur.
"It is lamentable that in one year we have fallen from heaven and arrived in hell," said Governor Blairo Maggi of Mato Grosso, Brazil's No 1 soybean producing state. Maggi's Amaggi operation is the largest producer of soybeans in the world.
Brazilian grain producers are seeking a government policy that will provide price support for sensitive crops, producer debt extensions and structural reforms, including lower diesel prices and tariffs on agrochemical and fertiliser imports.
"One of the world's most competitive farm regions is falling behind," Maggi added.
Governors from nine major farm states and government representatives from another three states attended a protest conference in Congress on Tuesday called "Agriculture and Ranching in Brazil: Crisis and Solutions."
"We're not going to have a protest with tractors. The protest will be worse. Producers will not plant," Homero Pereira, head of Mato Grosso state's farm federation Famato, said in reference to previous protests involving farm equipment.
In Brazil's main grain state of Parana, the highway patrol reported that there were nearly 100 points of blockage by producers that were not permitting the transport of agricultural goods in the state.
The port of Paranagua, however, said it was loading grains normally with nearly full grain stocks.
Brazil's Agriculture Minister Roberto Rodrigues said the government would announce the next year's Farm Plan in which there would be more money and lower credit for producers on May 25.
The minister announced 1 billion reais ($466 million) in emergency aid for the grains sector last week. But the sector said the figure was grossly inadequate and vowed to step up protests.

Copyright Reuters, 2006

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