The Government announced it will buy up to 1 million tonnes of maize produced in the key growing State of Mato Grosso, through an auction of option contracts, which give the producers the possibility to sell their product to the Government at a future date at a guaranteed price, protecting them against low prices in the market. Auctions are scheduled to begin in the next weeks and will last until 15 September. The price has been set at BRL 17.87 (USD 5.73) per 60 kg bag. In addition, the Government will also allocate up to BRL 500 million (USD 160 million) in subsidies to assist maize producers sell their crop via Pepro and PEP auctions. These measures, which aim to boost domestic sales of maize and protect producers, are being implemented in anticipation of a record 2017 crop, nearly 40 percent up from the drought-reduced level last year, as a result of increased plantings and overall favourable weather conditions. Domestic prices of yellow maize in March were about 30 percent lower than the corresponding month last year.