Brazil has already negotiated a total of 225 thousand tons of rice from the United States, India and Guyana, which are expected to enter the country in the second half of October and in November. The federal government took the decision to zero the Common External Tariff (TEC) on rice imports from outside Mercosur, as a measure to contain price increases on the domestic market. The measure was approved in early September, when the Executive Management Committee (GECEX) of the Chamber of Foreign Trade (CAMEX) zeroed the import tax rate for paddy rice until December 31 of this year, on a proposal by the Ministry of Agriculture and Food Supplies (MAPA). The temporary reduction is restricted to a quota of 400 thousand tons of grain. Brazilian rice production in the 2019/2020 harvest, estimated by the national food supply company CONAB at 11.2 million tons, meets the estimated consumption of 10.8 million tons. For 2021, rice production is expected to grow by 7.2% over the previous harvest. According to a report published by Valor Econômico newspaper, the federal government has not yet given up on the idea of also exempting imports of soy and corn from outside Mercosur due to the persistent rise in grain prices and its impact on the prices of some products on supermarket shelves.
Source: Datamar News