Brazil to import rice due to southern floods

Brazil's federal government signed a provisional measure that authorizes national supply company Conab to import up to 1mn metric tonnes of rice, following floods in the country's main rice producing state of Rio Grande do Sul.

The measure aims to replenish public stocks, while avoiding price speculation and maintaining the grain's price levels in the domestic market, amid the current logistical difficulties for supply, according to Brazil's agriculture minister Carlos Favaro.

Conab will hold public auctions and the acquired volumes will be sent to small retailers in metropolitan regions.

"It is important to highlight that we will not import everything at once to not compete with our local production," Conab's president Edegar Pretto said. "We must protect our farmers, but remain on alert for prices to not become too high for consumers."

Rio Grande do Sul's 2023-24 rice crop expected to account for almost 70pc of national output during the cycle. Alongside crop damage caused by the heavy rainfall, the floods are hampering the product's transportation.

The rice purchases are one of many government measures being taken to address the historic floods. The country has also unlocked relief spending and launched a R50.9bn ($9.9bn) program to aid victims. Development bank Bndes will also suspend the debts of companies and farmers hurt by the extreme weather.

The floods in the state have left at least 113 dead, 146 people missing and more than 165,000 people displaced, according to the civil defense.

By Nathalia Giannetti