The National Supply Company (Conab) suspended the auction for the purchase of rice imported scheduled for this Tuesday, an operation that the government had launched as one of the measures to limit the impacts on the product's prices, after the floods in Rio Grande do Sul.
The state-owned company did not immediately inform the reason for suspending the operation, which would initially purchase around 104 thousand tons of rice imported by third parties. Furthermore, the state-owned company published the statement about the suspension on the website on Monday night. Conab stated that it will publish the auction date in due course.
From the beginning, the imported rice purchase program was not well received by producers in Rio Grande do Sul, a state that normally accounts for 70% of the national harvest of the basic product.
Farmers say that, despite the losses, the harvest was already advanced, and productivity this year indicated good results. They also say that the purchase of imported rice could put pressure on local prices, discouraging the new harvest.
On the other hand, rising prices worry the government from an inflation point of view. The day before, the management committee of the Chamber of Foreign Trade (Camex) approved the reduction to zero of the import tax on three types of rice. The additional measure serves to avoid product supply and price problems resulting from the floods in Rio Grande do Sul.
The price of paddy rice placed in the Rio Grande do Sul industry rose 8.55% in the month, to 116.28 reais per 50 kg bag, according to the Cepea/Irga paddy rice indicator.
Source: Roberto Samora | Notícias Agrícolas
