Brazil’s government plans to purchase 445,000 metric tons of rice, corn, and beans to increase food stocks and combat inflation. Recent tariff cuts were implemented, but their effectiveness is being questioned. President Lula’s popularity has declined amid rising food prices, prompting a policy shift to enhance the crop agency’s budget for grain procurement.
The Brazilian government intends to purchase at least 445,000 metric tons of rice, corn, and beans in 2024 to bolster food supplies and combat persistent inflation, as reported by Valor Economico. This initiative represents a shift in policy from previous administrations, reflecting the government’s challenges in managing inflation effectively.
In an effort to address rising food prices, Brazil recently reduced import tariffs on specific food items; however, analysts have characterized this measure as potentially ineffective. The popularity of President Luiz Inacio Lula da Silva has declined, with citizens increasingly concerned about the upward trend in consumer prices.
The government has allocated an additional budget of 350 million reais (approximately $60.35 million) to the crop agency Conab for grain purchases. Valor cited Conab President Edegar Pretto regarding this funding allocation, although Conab has not yet provided confirmation of the specific quantities involved in this procurement effort.
According to the statistics agency IBGE, food and beverage prices surged by approximately 8% over the course of 2024, with a nearly 1% increase reported in January, marking the fifth consecutive month of rising prices. Further data for February will be available on Wednesday.
In summary, Brazil is taking significant steps to address inflation by enhancing food stock levels through the procurement of grains. The government’s shift in policy demonstrates its commitment to tackling rising consumer prices, although recent tariff reductions have yet to yield positive results. The situation remains fluid, with further developments expected as new data on price trends is released.
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