The Federal Government announced an emergency plan worth R$300 million to support rice producers in the Southern Region affected by the sharp drop in grain prices. The measure seeks to guarantee a minimum income for farmers and ensure the flow of 630 thousand tons of rice.
According to the Center for Advanced Studies in Applied Economics (Cepea), the amount paid per bag fell to around R$57 in October — the lowest level since 2011. The scenario worsened with the entry of rice imported from Mercosur countries, which increased competition and put even more pressure on the domestic market.
The execution of the plan will be the responsibility of the National Supply Company (Conab). The initiative applies to the entire South Region and includes both small and large producers.
Among the planned actions are public auctions to guarantee a minimum reference price, in addition to the direct purchase of 130 thousand tons of rice by Conab, which will be used to form public stocks.
The government also intends to encourage industries and businesses to purchase local production at the minimum established value, strengthening the flow and reducing losses to the sector.
