funpokergames| Brazilian rice prices soar: 30% production cuts in MERCOSUR triggered price increases

News summary

Newsletter text

Rice prices soar 30% in MERCOSURfunpokergamesThe Brazilian government eliminated import taxes to boost supply.

May 22, Southern Common MarketfunpokergamesThe price of rice rose rapidly after heavy rains in Rio Grande do Sul, Brazil, with an increase of 30%. This time Brazil decided to cancel grain import taxes on non-South American regions to increase market supply.

Rio Grande do Sul is an important producer of Brazilian rice, accounting for 70% of the country's total. Due to the impact of heavy rains, local rice production dropped significantly. To this end, the Brazilian Ministry of Agriculture took emergency measures to import rice through auction.

Faced with rising rice prices, the Brazilian government decided to suspend auctions and plans to cancel grain import taxes on countries outside South America. The move aims to increase domestic supply and reduce dependence on imports.

MERCOSUR is made up of four countries: Brazil, Argentina, Paraguay and Uruguay. Among them, the latter three countries are major suppliers of Brazilian rice and enjoy zero-tariff treatment to Brazil.