Source: Ukragroconsult (Ukraine)
Edegar Pretto, the head of Brazil’s Conab agency, stated that the government aims to modify grain procurement regulations to bolster food reserves and combat inflation. The existing guidelines, which were established to aid farmers during times of low prices, no longer adequately address the current economic challenges. Pretto noted that grain prices seldom drop to the minimum threshold required for government purchases.
This initiative to enhance food stocks marks a shift from the approaches taken by former administrations and reflects the authorities’ intent to manage inflationary trends. Discussions are underway regarding revisions to the present procurement rules. Pretto highlighted that these changes should not only support farmers’ income but also facilitate stockpiling.
“There is a need for greater flexibility; the goal is for the government to acquire grain at lower prices without elevating market production costs,” Pretto remarked.
Recently, Brazilian officials reduced import tariffs on specific food items to counteract price surges. However, some analysts have deemed this action ineffective. With inflation continuing to climb, support for President Luiz Inacio Lula da Silva is waning as public worries about increasing living expenses grow.
As reported by Conab, the government might allocate an extra 350 million reais (approximately $60.4 million) to purchase 445,000 tons of grains, including corn, rice, and pulses. So far, R$189 million has already been earmarked for this initiative.