IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 06 Jul 2016 | Removal date: open ended
Still in force

Price stabilisation

On July 5, 2016, the Brazilian Ministry of Agriculture, Livestock and Supply passed Resolution 123 approving new minimum prices for several agricultural products as part of the national Policy of Guaranteed Minimum Prices. The new prices imply an increase for maize from Mato Grosso and Rondonia as well as long grain rice.

In the case of Maize, the price increased by 21.68 percent from USD 4.07 (BRL 13.56) to USD 4.95 (BRL 16.50) per bag of 60 kg, while the price for fine long grain paddy increased by 18 percent from USD 8.91 (BRL 29.67) to USD 10.5 (BRL 34.97) per bag of 50 kg.

Policy of Guaranteed Minimum Prices

The Policy of Guaranteed Minimum Prices launched in 1966 has the objective of protecting producers when market prices fall to levels which are considered too low. To do so, the National Food Supply Company (CONAB) uses different commercialisation instruments, usually in the form of auctions in which the Government buys certain amounts of the agricultural products directly from small and medium sized farmers.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

011 Cereals
1005 Maize (corn).
100590 Other
1006 Rice.
100610 Rice in the husk (paddy or rough)

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