Brazil increases minimum prices


On 17 February, the Government published the new minimum guarantee prices for all wheat grain varieties and wheat seeds for the 2020/21 (July/June) agricultural season. Prices were increased by 6.95 percent compared to their levels in the 2019/20 season; price levels differ depending on the region and wheat type. In the South Region, which is the country’s key producing area, the minimum price for bread-type wheat, type 1, was raised to BRL 43.39 per 60 kg bag from BRL 40.57 in the 2019/20 season (FPMA Food Policies). Prices of wheat seeds went from BRL 1.66 to BRL 1.78 per kg. The minimum prices for rice were raised by the National Supply Company (Conab) and published in the Official Gazette in July last year, but they only took effect in February 2020, when the new harvest began. In Rio Grande do Sul and Santa Catarina states, the minimum price for rice is BRL 20.55 per 50 kg bag, representing an increase of almost 9 percent from BRL 18.9 of the previous season. In the other states of the country, the increase was of 10 percent to BRL 26.90 per 60 kg bag. The mechanism of the Minimum Price Guarantee Policy (PGPM) aims to reduce fluctuations in the income of rural producers and to ensure a minimum remuneration, encouraging or discouraging production while ensuring the regularity of national supplies.

Country: Brazil