Government foresees reduction in rice prices until April and plans changes to the Safra Plan – News

The government of Luiz Inácio Lula da Silva argues that the rise in food prices is due to climate change, predicts a reduction in the price of rice by April and plans changes to the Safra Plan. The information was given by ministers after a meeting with the president, held at Palácio do Planalto. The meeting aimed to discuss food prices and production.

Ministers Rui Costa (Civil House), Fernando Haddad (Finance), Carlos Fávaro (Agriculture and Livestock) and Paulo Teixeira (Agrarian Development and Family Farming), as well as the director-president of Conab, Edegar Pretto, participate in the meeting. It is the second meeting to discuss reducing food prices, which has increased inflation in the country, in less than a week. The first meeting took place last Monday (11).

“The president called the team of ministers to discuss this rise in food prices that occurred at the end of the year. In fact, the president’s concern is that food arrives cheaply on the tables of the Brazilian people. All the evidence is that it has already fallen [o preço], there was a decrease in producer prices and there will be an even greater decrease. This increase was due to climate issues”, stated Paulo Teixeira.

“The cases of rice. Yes, at the end of the year, there was an increase in the price of rice in the supermarket. It is worth remembering that Rio Grande do Sul produces practically 85% of the rice produced and consumed in Brazil. And we had floods in Rio Grande do Sul , exactly in the producing areas, which caused some instability”, said Fávaro. “Prices to producers have already dropped from R$120 to R$100 per bag. What we hope will be transferred, this drop in prices, that wholesalers will also lower on supermarket shelves, which is where people buy”, he added.

Last month, items such as carrots (43.85%), potatoes (29.45%), carioca beans (9.70%), rice (6.39%) and fruits (5.07%) influenced maintaining the index at high levels. In February, the country’s official inflation was 0.83%. Despite the official calculation — made by IBGE (Brazilian Institute of Geography and Statistics) — the financial market forecast for inflation in 2024 was reduced from 3.8% to 3.76%.

At the meeting, the ministers discussed changes to the Safra Plan with the president. The program, which has a record value, encourages the adoption of sustainable agricultural practices, competitive interest rates and the potential to maintain Brazilian agribusiness as one of the main vectors of the national economy. Among the ideas evaluated are the option of contract options and stock of certain foods, such as rice, beans, wheat, corn and cassava.

Furthermore, the Minister of Agriculture spoke about the dinner that will be held between Lula and the agribusiness sector. According to Fávaro, the meeting should take place soon and depending on the president’s agenda. For now, the areas of coffee growing, cotton, meat and fruit growing have been called up. Behind the scenes, the measure aims to bring PT members closer to businesspeople.

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