The price of rice is the lowest in the last 14 years

The average price of husked rice in Rio Grande do Sul reached, in October, the lowest real level since September 2011, according to a survey by Cepea. The sharp depreciation reinforces the discouragement of rice growers and should contribute to the reduction of the cultivated area in the next harvest. According to the CEPEA/IRGA-RS Indicator — which considers grains with 58% of whole grains and cash payment —, the current value of the sack does not cover the production costs, a reality aggravated by the difficulty in accessing rural credit. This scenario has caused strong insecurity among the producers in Rio Grande do Sul, who are responsible for more than 70% of the national production. The contraction in prices is also related to the behavior of buyers. The pressure on the prices of beneficiated rice, both in the wholesale and retail markets, has limited the passing on of increases to the producer, creating a bottleneck between the productive end and the consumer market. This ...