The rice industry is still awaiting more details and an agreement between the Federal Government and Congress to understand how the exemption on basic food products could affect its business. Immediately, any text approved in accordance with what was released will do little to change the price.
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“We need to see if the FPA’s proposal [Frente Parlamentar da Agropecuária] either the government’s decision or a third party will be definitive. And we will have a ten-year period of mixed system,” he told Rural GlobeAndressa Silva, executive editor of the Rice Industry Association (Abiarroz).
Another point to be monitored is how the inputs are along the rice chain. “The exemption is on the final product, but the packaging, the pesticides in production, all of this is burdened. Are we going to have a reimbursement system or will everything become a cost?” asks the executive.
A third point that concerns the industry is competition with Mercosur. Today, rice that arrives in Minas Gerais from partner countries has zero taxes. What arrives in São Paulo allows industries in São Paulo to receive a credit, which also leaves the tax null. At the same time, rice that goes to these two states from Rio Grande do Sul or Santa Catarina pays between 7% and 10% tax.
“We have many doubts whether this war between states will continue and what the participation of paddy rice will be like. Will it be taxed? How much?” asks Andressa.
On a positive note, the industry representative celebrates that the government text follows a decree from the Ministry of Social Development and eliminates taxes on rice derivatives, flour and pasta. This has a direct impact on pasta, biscuits and rice flour, which caters to many wheat-restricted consumers.
“These products are so expensive today that they drive away production and consumers. These measures would bring cheaper products to 2 million people”, calculates the executive.
