The heavy rains that have hit Rio Grande do Sul since the end of April should lead to a rise in food prices, predicts the Federation of Commerce of Goods, Services and Tourism of the State of São Paulo (Fecomercio-SP). According to the entity, there is a risk of both loss of products and impacts on the transport of goods.
Among the products that should have their prices affected are, according to Fecomercio, dairy products and rice. “Rio Grande do Sul is the largest rice producer in the country, and although just over 80% of the crop has been harvested, it is still not possible to know whether stocks have been reached or how much of the remaining portion has been lost”, says the note. of the federation.
According to the entity, flooding and damage to the state’s infrastructure could affect the logistics of transporting rice and traditional fruits from the region, such as grapes, peaches and apples.
“The raising of cattle for milk production, which must be impacted by the loss of cows and pasture, in addition to the ingestion, by these animals, of poor quality water, due to the current local conditions”, adds the analysis released by the federation .
Despite emphasizing the problems that should affect food supplies, Fecomercio estimates systemic damage caused by the rains. “The Brumadinho tragedy, smaller and more localized, caused a 0.2% drop in the Brazilian Domestic Product (GDP, sum of goods and services produced in the country) in 2019, more than R$20 billion in current values. In Rio Grande do Sul, it is very likely, unfortunately, that the damage caused will have an even greater impact on the national GDP”, he compared.
The Civil Defense of Rio Grande do Sul has already counted 100 deaths caused by the rains. According to the agency, floods, landslides and landslides affect around 1.45 million people in 417 municipalities. 66,700 people were left homeless.
Tags: Rains food prices rise Fecomercio
