How does the federal government's rice import tariff exemption guarantee supply?
O Federal Government announced the exemption of three types of rice from the import tariff, a measure approved at an extraordinary meeting of the Executive Management Committee (Gecex) of the Chamber of Foreign Trade (Camex) on May 20. The decision aims to guarantee the supply of the product on the domestic market and comes into force from the date of publication in the Federal Official Gazette, and is valid until December 31st of this year.
Ensuring food safety
"By zeroing the tariffs, we are trying to avoid problems of shortages or increases in the price of the product in Brazil, due to the reduction in supply. The government is acting to guarantee food security and the well-being of all Brazilians," said Geraldo Alckmin, Vice President and Minister of Development, Industry, Trade and Services (MDIC).
This measure includes two types of non-parboiled rice and one polished/milled type in the List of Exceptions to the Common External Tariff (Letec), at the request of the Ministry of Agriculture and Livestock and the National Supply Company (Conab). The decision was prompted by the floods in Rio Grande do Sul, the country's largest rice producer, responsible for around 70% of the national crop.
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Import parameters
On May 15, the Federal Government established the parameters for the importation of rice processed by Conab, in accordance with Provisional Measure no. 1.217/2024. Conab has been authorized to import up to one million tons of rice through public auctions throughout 2024. The first purchase, of up to 104,034 tons, is scheduled for Tuesday, May 21, with a budget of R$ 416.1 million, in addition to R$ 100 million earmarked for price equalization for the sale of the product.
The first batch of rice will be sold to small retailers and public food and nutrition security facilities in the metropolitan regions of the states of São Paulo, Bahia, Minas Gerais, Rio de Janeiro, Pernambuco, Pará and Ceará.
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Affordable prices and market stabilization
"President Lula's government is guaranteeing a fairer price for Brazilian consumers: rice at R$ 4 a kilo. This is the price consumers will pay for the rice that the Brazilian government is importing to supply the domestic market. It will bring down the cost of living, since rice is very important in the Brazilian people's meals," said Paulo Teixeira, Minister of Agrarian Development and Family Farming.
Currently, most of Brazil's rice imports come from Mercosur, where the import tax rate is already 0%. However, there is potential for imports from other origins, such as Thailand, which in 2024, until April, already accounted for 18.2% of the total imported.
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Avoiding speculation
The Minister of Agriculture and Livestock, Carlos Fávaro, stressed that the initiative aims to prevent prices from rising and that imported rice will not compete with Brazilian farmers. "Under no circumstances is the federal government thinking of competing with rice producers who are going through difficulties. Our goal is to avoid financial speculation and stabilize the price of the product in markets across the country," said Fávaro.
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Conclusion
The exemption from the import tariff on rice is a strategic measure by the federal government to guarantee supply and stabilize prices on the domestic market. This action seeks to protect both consumers and producers, ensuring food security and economic stability.
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