Brazil removes Rice Import Tariffs Until Year-End Due to Floods

1. Brazil removes Rice Import Tariffs until Year-End Due to Floods Brazil's trade ministry announced that, as of right now and through December 31, 2024, tariff-free imports of polished and non-parboiled rice will be permitted. The government will be able to prevent severe shortages of the basic grain in Brazil thanks to this step, which may also compel growing domestic prices to decrease in the wake of disastrous floods in Rio Grande do Sul state, which produces two thirds of the nation's rice. Are you an importer looking to Import Bulk Rice? Following a revision to the federal government's list of tariff-exempted products, the exception will be granted to rice with Brazilian import codes (NCM) 10061092 and 10062020, which typically pay a 9% duty, and 10063021, on which a 10.8% tariff usually applies. Brazil Halts Rice Tender Amid Farmer Backlash Over Pricing and Import Concerns Conab, the government's food security and supply agency, was scheduled to release a call for bids on May 21 to buy up to 104,000 metric tons of milled rice. However, the organisation declared that the bids have been halted and a new deadline will be disclosed. In order to prevent price gouging,

2. the tender terms stipulated that the rice would be supplied to the nation pre-packaged in 2 kg quantities bearing the federal government seal and priced at 8 reals, or $0.78 per kilogram. A split between the government and the associations representing rice producers has been brought to light by analyses of Brazilian agricultural periodicals. Farmers contend that the government's plans may cause them to suffer losses and result in less planting the next season. A tariff-free import cap was what farmers desired. Exporters Warn of Threats to Brazilian Rice Mills Amid Farmer-Exporter Dispute "Without a cap, it might lead to serious issues because Asian pricing are more affordable. One exporter stated, "The retail sector's ability to purchase pre-packaged rice from other nations may put the (local) mills that do this in jeopardy. Exporters claim that farmers are asking for exorbitant prices for their produce and have mostly played down reports of significant losses, claiming that 85–90% of the rice grown in Rio Grande do Sul was harvested before the floods and that some of the remaining rice was grown in unaffected areas. They do admit, though, that more days of rain have delayed the draining of floodwaters, which will determine the true extent of the damage. Brazilian Rice Exporters Struggle with High Prices and Slow Recovery After Floods One exporter stated, "We think it will take a few weeks to be kind of normal." Although one exporter reported that Rio Grande do Sul port in Brazil was running smoothly, once the roads are fully reopened, commerce will probably be light. Exporters understand that importers with less expensive options will not be attracted to their present rates, which range from $880 to $1,000 per metric ton. "Selling for $1,000 per metric ton is difficult. This is a substantial sum, so we're not making many proposals," an exporter remarked. Conclusion If you are looking to Rice importers, now is the right time as Brazil has put a hold on import taxes on rice until the end of 2024 in an effort to regulate prices and minimise shortages following the terrible floods that occurred in Rio Grande do Sul. Local producers are upset about this decision because they expect financial losses and a decrease in planting. A large rice tender has been postponed due to these disagreements. The market's reaction is still unknown, and it will likely take several weeks for things to recover.

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