Brazil's Agriculture, Livestock, and Supply Minister Carlos Fávaro announced that the government has prepared a Provisional Measure (MP) for the importation of 1 million tons of rice by the National Supply Company (Conab) in light of the rainfall in Rio Grande do Sul. According to Fávaro, the imported rice will be ready for consumption to mitigate the impact on rural producers.

Objective: Preventing Speculation and Ensuring Stability

Minister Fávaro emphasized that the importation of rice aims to prevent speculation and ensure stability. Initially, the government's plan was to purchase 200 thousand tons of processed and packaged rice to address shortages and prevent speculation.

Approval Pending Congressional Authorization

However, the measure can only be implemented after the Legislative Decree Project (PDL), providing resources to assist Rio Grande do Sul in the midst of the damage caused by the rains, is approved by Congress. Minister Fávaro signaled that importation could be suspended if there is stability in grain prices.

Stabilizing Rice Prices

Fávaro stated that the goal is to prevent a more significant increase in rice prices, emphasizing the need for swift action in importation. According to him, the focus is on pre-peeled and packaged rice to expedite the process.

Competitive Bidding Expected

The first auction for 200 thousand tons of rice is likely to attract competitive bids, particularly from Mercosur countries. Fávaro highlighted the logistical challenges of transporting rice from Rio Grande do Sul to consumer centers.

Challenges Ahead

While there is an expectation that Rio Grande do Sul will have around 1.6 million tons of rice in its fields, logistical challenges remain. Minister Fávaro acknowledged the difficulties faced by producers in supplying rice and emphasized the importance of addressing logistical hurdles.