The Ministry of Agriculture officially informed Brazilian rice producers of the opening of the Mexican market and the establishment of a sales quota of 75,000 tons of un-husked rice through to December of this year. Rice exports have been growing year after year, and reached almost 12.000 TEUs in 2020 – see graph below. Historically exports to Mexico have been nill up until last year, when they reached almost 400 TEU. Assuming one container may weigh approximately 20 tons, the new 75,000 tons quota may account for a total of 3,750 TEU. The Commercial Director of the Rio Grande Rice Institute (IRGA), João Batista Camargo Gomes, stated in a note that “the information was public knowledge since September last year, but there was still a lack of confirmation. This announcement now by the Ministry of Agriculture allows us to work on this market, mainly because it is paddy rice. With a good harvest, the total production will be slightly above the previous crop, maintaining supply, making exports feasible, and regulating the market. Mexico advised the Brazilian government last year about opening a multi-year tariff quota for the import of paddy rice. In 2020, the volume of cereal authorized to enter Mexico at zero tariffs was 30,000 tons. This year, the quota increases to 75,000 tons.
Source: Datamar News