Lula government publishes provisional measure authorizing Conab to import up to 1 million tons of rice, processed or in bark, exceptionally. Public auctions at market prices will carry out the operations, due to the tragedy that is plaguing Rio Grande do Sul, the largest food producer, an initiative that, on the other hand, goes against the interests of the sector.
According to the text of the MP, the federal government will make these purchases to replenish public stocks. “Preferably, the stocks will be intended for sale to small retailers in metropolitan regions, eliminating the need for auctions on commodity exchanges or public bidding for direct sales”, highlighted the sole paragraph of MP number 1,217, of 2024.
On Wednesday, in an interview with Reuters, the president of the Federation of State Rice Growers' Associations (Federarroz), Alexandre Velho, had mentioned that a measure to import rice by the Brazilian government was unnecessary to supposedly avoid impacts on inflation due to the floods in Rio Grande do Sul.
Despite the floods, said Alexandre Velho, the people of Rio Grande do Sul will still produce more than last year. “Without reason, the measure is not necessary… There is no reason for the government to do this, bringing a disincentive again if prices fall,” he said, in a telephone interview.
Furthermore, the president of Conab, Edegar Pretto, said in a statement that the objective of the MP is also to avoid speculation and impacts on inflation. “In addition to ensuring there is no shortage of rice in the country, with this measure, we will ensure that the price does not rise due to speculation by someone who wants to take advantage of the situation in Rio Grande do Sul,” said Pretto.
Definitions
Conab and ministries will define the quantity of rice to be purchased, sales conditions and the possibility of a discount.
During the term of the MP, the Ministry of Agriculture will waive the certification provided for in a 2000 law, which establishes technical and operational conditions. As well as the relevant documentation, for the qualification of warehouses intended for the storage and conservation of agricultural products.
Source: Notícias Agrícolas