Ministry of Agriculture: rice imports outside Mercosul total 225 thousand tons

Published 2020년 10월 2일

Tridge summary

Brazil has purchased approximately 225,000 tons of rice from the United States, India, and Guyana, with an expected arrival date in the latter half of October and November. This move is part of a strategy by the federal government to control the rise in domestic rice prices by resetting the Common External Tariff on rice imports from countries not in Mercosur until the end of the year. This tariff reduction is limited to a quota of 400,000 tons. The decision to import more rice comes amidst a surge in domestic consumption due to the Covid-19 pandemic, which has led to higher prices for basic foods like rice and beans. Despite the need to import rice, Brazil's rice production for the 2019/2020 harvest was estimated at 11.2 million tons, slightly exceeding the estimated consumption of 10.8 million tons. A projected increase of 7.20% in rice production for 2021 is anticipated.

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Original content

So far, Brazil has bought about 225,000 tons of rice from the United States, India and Guyana, which is expected to arrive in the country in the second half of this month and in November. The information is from the Ministry of Agriculture. The federal government took the decision to reset the Common External Tariff (TEC) on rice imports outside Mercosur until December 31 this year, as a measure to contain the increase in the prices of the product in the domestic market. The temporary reduction is restricted to the quota of 400,000 tons of cereal. The Director of Marketing and Supply of the Ministry of Agriculture, Silvio Farnese, said in a note that “the increase in domestic consumption caused by the growth of food at home due to the Covid-19 pandemic resulted in the increase of basic food prices, such as rice and bean". According to him, the increase in world demand for food with the concern of food security has created a favorable scenario in the country for the ...

Source: SNA