Rains in RS could increase food prices, warns Fecomercio

The Federation of Commerce of Goods, Services and Tourism of the State of São Paulo (Fecomercio-SP) predicts that the heavy rains that have hit Rio Grande do Sul since the end of April will have a direct impact on food prices. According to the entity, both the loss of products and problems in transport logistics can contribute to rising prices.

Among the products that should be affected are dairy products and rice, with Rio Grande do Sul being the largest national producer of the latter. Although more than 80% of the crop has already been harvested, it is not yet possible to determine the impact on remaining stocks. Furthermore, flooding and damage to state infrastructure can make it difficult to transport not only rice, but also traditional fruits from the region, such as grapes, peaches and apples.

The federation’s analysis also highlights the possible impacts on livestock farming for milk production, due to the loss of animals and pastures, as well as the quality of the water consumed by them.

Despite emphasizing the challenges in food supply, Fecomercio warns of the systemic damage caused by the rains. Comparing it to the Brumadinho tragedy, the entity suggests that the losses in Rio Grande do Sul could have an even greater impact on the national Gross Domestic Product (GDP).

The situation is serious in the state, with Civil Defense already registering 100 deaths, affecting around 1.45 million people in 417 municipalities. Around 66,700 people are homeless due to floods, landslides and landslides.