Brazilian farmers and government have clashed over the recent authorization to import rice, given the extraordinary floods and consequences suffered by the state of Rio Grande do Sul, the main producer the cereal. As a result of the situation the Brazilian Agriculture and Livestock Confederation (CNA) has filed a lawsuit against the federal government’s decision to authorize rice imports.
Brazil's National Supply Company (Conab) has been entrusted with purchasing one million tons of rice to feed the people of Rio Grande do Sul and avoid the intervention of middle people seeking a black market profit from the victims of the unprecedented storms. Under normal circumstances, Rio Grande do Sul accounts for 70% of Brazil's rice production.
It's rice harvest time in Uruguay, and the country expects to collect over a million tons of the cereal which is enjoying a favorable international prices prospect since the world's main exporter India, has dropped out of the market. The production of Uruguay's 150,000 hectares of rice paddies are expected to bring in close to US$ 700 million in exports this year, which will be higher than the US$ 550/600 million from the 2023 harvest.
Mercosur country members have been receiving requests for supplies of rice as the cereal price has seen a sharp surge in recent months as major Asian producers curtail their trade and supplies. This could impact millions of consumers around the world, with Asian and African countries expected to bear the brunt.
Mercosur members have been added to Ecuador’s list of potential rice suppliers as the Andean country seeks to import rice to keep its stocks full, as they have been significantly depleted due to crop issues. Ecuador shortfall production could reach some 200,000 tons.
Uruguayan President Luis Lacalle Pou and Agriculture Minister Fernando Mattos spoke to reporters after attending the ceremony Monday marking the launch of the 2023 rice harvest, which will be one of the few items with something to celebrate in a country hit by drought.
As Brazil continues to expand its agriculture frontiers and farming techniques, two cereals of which the country has been historically an importer are becoming increasingly self-sufficient. This is particularly true for wheat and rice, with most crops in the southern states of the country.
As India, the world leader in exports restricts rice shipments, Brazil signaled at the World Trade Organization (WTO) that together with Mercosur partners, it is ready to expand exports and help with global food security.
Brazilian rice exports (husk base) totaled 451.3 thousand tones during the first quarter, more than double the same period in 2021 when 207.7 thousand tons were shipped, reports the Brazilian Rice Industry Association (Abiarroz).
Brazilian oilseeds and grain exports are booming. China's purchases of soybeans more than doubled in the first two months of the year, while husk rice overseas sales during February jumped 65% compared to a year ago.