Learn about the impacts of the drop in rice prices on ICMS revenue.

According to the second technical note released by Farsul this Thursday (18), the cumulative drop of 47% in the price of rice in 2025 compromises the collection of ICMS in municipalities dependent on the crop, generating fiscal risk for the state and for local production chains. The strong recovery of the 2024/25 crop in Rio Grande do Sul — the main rice-producing state in Brazil — brought a severe side effect: between January and December 2025, the price of the grain fell by 47%, a direct reflection of the significant increase in supply. The impact goes beyond the field and already affects public finances, especially in cities where rice cultivation is central to the economy. The economic team of the Federation of Agriculture of the State of Rio Grande do Sul (Farsul) released a technical note detailing the direct correlation between the average price of a sack of rice and the collection of ICMS (Tax on the Circulation of Goods and Services) from the rice production chain. The ...