Associations say that rice supplies for Brazil are guaranteed

Rice producers and supermarkets report that there is no risk of grain shortages in Brazil, despite the floods in Rio Grande do Sul, the state responsible for 70% of national production. The guarantee is from the Federation of Rice Growers Associations of Rio Grande do Sul (Federarroz) and the Brazilian Association of Supermarkets (ABRAS).

Faced with the risk of speculation – and increased demand for the product, by consumers concerned about stocking up on rice, in case of a possible shortage in the markets – the federal government published, in the Official Gazette of the Union this Friday (10), a provisional measure that authorizes the National Supply Company (Conab) to import up to 1 million tons of processed or paddy rice, through public auctions, to replenish public stocks.

According to the MP, the stocks will have, as their preferred destination, small retailers in metropolitan regions, “eliminating the use of auctions on merchandise exchanges or public bidding for direct sales”.

The expectation is that, in the first stage, 200 thousand tons of rice will be purchased, which must be imported from neighboring Mercosur countries, such as Argentina, Uruguay and Paraguay, and eventually from Bolivia.

Guaranteed supply

According to Federarroz, the harvest in RS covers, to date, 83% of the total area planned for the harvest. The entity adds that the harvested product has “good quality and productivity, which guarantees supply to Brazilians”.

President of the entity, Alexandre Velho said that the areas where the harvest has already been carried out have good productivity averages. “We already have a good volume of rice and even if we have difficulties in harvesting this balance that remains to be harvested, Rio Grande do Sul is certainly fully capable of harvesting a harvest well above seven million tons”, he said.

“Although we have this big problem in relation to harvesting what is missing, we are fully able to say that we do not have problems in relation to supplying the domestic market”, he added.

According to him, there is a “momentary logistics problem”, mainly in the connection with the interior of the state, but the connection with the large centers, through BR-101, is normal. “We have plenty of rice to move to the central regions of Brazil. So there is no problem regarding supply or an urgent need for imports”, he added.

Supermarkets

Along the same lines as rice farmers, the Brazilian Supermarkets Association reported that retail supply is back to normal, “with different brands, prices and promotions to meet consumer demand both in physical stores and through e-commerce”.

The entity, however, recommends that consumers not stock up at home so that everyone has continuous access to the product.

As a preventive measure, Abras expressed support for the opening of imports announced by the federal government to complete the supply of the Brazilian population.