Buenos Aires  - The Argentine government on Friday revoked a controversial increase of export tariffs on soybeans and sunflower that launched a four-month conflict with the country's powerful agricultural sector.

"We ordered that they be made ineffective so that the tariffs can be discussed democratically," Argentine government Chief of Staff Alberto Fernandez said.

Early Thursday, the tariffs were put to a vote in the Argentine Senate, in a last bid to salvage the measure after months of protests against the tariffs by farmers and efforts to reach a compromise.

The measure failed, with a tie among senators and with the unlikely vote against cast by Argentine Vice President Julio Cobos, as Senate president.

The resolution to increase tariffs, tying them to the price of produce in international markets was launched on March 10. Argentina is the world's third-largest producer of soybeans and exports over 95 per cent of its production. The tariffs increased on soybeans from 35 to 47 per cent, based on the current price.

On Friday after the measure was revoked, tariffs were again reduced to 35 per cent, independent of international prices.

After initial protests against the tariffs were launched, the government subsequently modified its proposal in favour of smaller producers, and presented a plan setting aside the extra funds obtained from the tariffs for specific social programmes. However, farmers' opposition remained unrelenting, and the government's last concession - to send the decree to Congress for approval - backfired.

On Friday, farmers' associations expressed satisfaction about the revocation of the decree, although they noted that they would continue to pursue the adoption of changes to favour smaller producers. The latest government proposal had reduced tariffs for smaller producers to just 30 per cent. (dpa)