Brazil ag minister says action to import rice 'not necessary'
SAO PAULO, July 3 (Reuters) -The Brazilian government will no longer need to buy imported rice, Agriculture Minister Carlos Favaro told a local TV channel on Wednesday, after the plan attracted flak from local farmers.
"Prices have already dropped," Favaro said, adding the government will continue monitoring the market. "As there is no speculation, in my opinion, new auctions are not necessary."
Last month, Brazil's national crop agency Conab canceled the results of a controversial rice auction over doubts about the winners' financial capability to honor their commitments. The government said then it would hold a new auction to purchase imported rice, but stopped short.
In that rare auction, Brazil had purchased 263,370 metric tons of imported rice for 1.32 billion reais ($236.28 million). The goal was preventing a price hike after historic floods in the top producing state Rio Grande do Sul, which submerged entire towns, killed livestock and disrupted harvesting of crops like corn and soy.
According to the minister, Brazil's Plano Safra farm credit program, to be announced later in the day, will offer loans to increase rice production in the flood-hit state, as well as in others.
($1 = 5.5867 reais)
Reporting by Eduardo Simões and Letícia Fucuchima
Writing by Ana Mano, Editing by Franklin Paul
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
